MediaTek’s revenue jumps in January on Trump tariffs, China stimulus

MediaTek reported revenue of NT$51.144 billion ($1.56 billion) in January, up 22.7 percent month-on-month and 14.94 percent year-on-year. That puts the company’s monthly sales above NT$50 billion again, a rare occurrence but in line with the vendor’s optimistic forecast for the first quarter of 2025.

Image source: digitimes.com

The company attributed the strong financial performance to two main factors. First of all, this is influenced by sales growth, caused by the desire of MediaTek customers to accumulate stocks against the backdrop of the upcoming introduction of duties on goods from China by the United States. The positive dynamics are also influenced by the state program to stimulate the economy, thanks to which smartphone manufacturers have increased orders for chips.

Against this backdrop, MediaTek expects its financial results for the first quarter of 2025 to surpass those of the previous three-month period, as demand for the company’s products has been unusually strong at this time of year. This trend is likely to spread throughout Taiwan’s chip industry.

The subsidy policy implemented by the Chinese authorities is crucial for the development of MediaTek’s mobile business. Thanks to this, the vendor’s share in the segment of chip production for flagship smartphones is gradually growing, and sales volume exceeds previous figures. The company expects that the economic stimulus program will significantly increase consumer interest in purchasing flagship smartphones.

The looming threat of tariffs on Chinese goods has forced manufacturers to stock up on chips used in a variety of devices, including TVs, tablets, networking equipment, and more. This has led to a sharp increase in orders from MediaTek customers. At the moment, there is uncertainty about how long this demand will last. The company expects to have a clearer picture of market trends by the second quarter, when it will provide a more accurate financial forecast for the year.