NewKerala.com

MediaTek Targets 10% Annual Growth Despite Q2 Slowdown

MediaTek expects annual revenue to grow nearly 10% despite a flat or declining Q2. CEO Rick Tsai cites cautious demand and rising costs in smartphone chip development. The company forecasts a recovery in mobile chip business by H2 2026, driven by 2-nanometer flagship chips. Smart device platform and disciplined pricing are expected to support full-year margins.

Key Points: MediaTek Projects 10% Annual Growth Amid Q2 Dip

  • Annual revenue growth projected at nearly 10%
  • Q2 revenue may stagnate or decline up to 6%
  • Smartphone chip recovery expected in H2 2026
  • Smart device platform to see double-digit growth
2 min read

MediaTek projects 10% annual revenue growth despite Q2 slowdown

MediaTek forecasts nearly 10% annual revenue growth despite Q2 stagnation. CEO Rick Tsai cites cautious demand and smartphone chip recovery by H2 2026.

"customer demand remains cautious in the near term - Rick Tsai"

Taipei, May 4

MediaTek Inc. has announced that it expects its annual revenue to grow by nearly 10 per cent this year, despite a projected stagnation or decline in the second quarter. The Taiwan-based integrated circuit designer cited cautious market demand as a primary factor for the near-term outlook, according to a report by Focus Taiwan.

For the second quarter of 2026, the company estimated revenue to fall between NT$140.2 billion (approx. USD 4.46 billion) and NT$149.2 billion (approx. USD 4.74 billion). These figures represent a range from flat growth to a 6 per cent decline compared to the first quarter. On a year-over-year basis, the forecast suggests a potential drop of between 1 and 7 per cent.

As per the report, MediaTek CEO Rick Tsai said customer demand remains cautious in the near term, while a shift in resources toward data center development has raised costs in the smartphone industry, leading to increased product pricing.

"Gross margin in the first quarter rose 0.2 percentage points from the fourth quarter of 2025 to 46.3 percent, while net profit attributable to the parent company increased 5.36 percent to NT$24.15 billion, with earnings per share of NT$15.17, supported by a more favorable product mix," the report said.

Global smartphone shipments are expected to decline by about 15 per cent this year, Tsai added. However, the report also mentioned that MediaTek said it expects a recovery in its mobile chip business in the second half of the year as flagship smartphones powered by the company's 2-nanometer chips are set to launch late in the third quarter.

Meanwhile, the company's smart device platform, which spans connectivity, computing and automotive applications, is expected to achieve double-digit growth this year, supported by market share gains and rising DRAM prices for some TV chips, Tsai said. The forecast excludes contributions from application-specific integrated circuits (ASICs) for data centers.

Revenue from power management ICs is expected to remain largely flat in the second quarter. Despite near-term headwinds, Tsai said the company aims to maintain full-year gross margin within the second-quarter guidance range of 44.5-47.5 percent through disciplined pricing strategies.

- ANI

Share this article:

Reader Comments

S
Sarah B
As someone who follows global tech markets from India, this 10% growth projection amid Q2 stagnation seems optimistic but plausible. MediaTek's diversification into smart devices and automotive is key here. The 15% decline in smartphone shipments is concerning though, even for us in India where smartphone penetration is still rising. Let's see how the second half plays out.
V
Vikram M
MediaTek chips power so many budget and mid-range phones here in India! If they're predicting a 6% decline in Q2, that could affect prices in our market too. But the 2nm flagship chips later this year sound exciting—hope they bring competitive options for OnePlus and Xiaomi devices available to us. Tsai's disciplined pricing strategy gives me some confidence. 💪
M
Michael C
From a business perspective, this is a solid performance given the global chip glut. MediaTek's gross margin improvement to 46.3% shows good cost control. The flat power management IC revenue is a bit disappointing, but the smart device platform's double-digit growth is promising. India's electronics manufacturing sector would benefit from more such steady growth stories.
P
Priya S
Good news for MediaTek but I wish they'd address the rising cost issue more transparently. As a consumer in India, we already see phone prices going up—inflation is hitting everywhere! The 15% decline in smartphone shipments doesn't surprise me; many people are holding onto phones longer. Still, the automotive and TV chip growth could be a bright spot for India's tech ecosystem. 🌟

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50