MediaTek Allegedly Reallocating Mobile Resources to Capitalise on AI Chip Boom
Smartphone processor giant MediaTek is reportedly executing a major strategic pivot. Citing supply chain sources, the Commercial Times reported that the Taiwanese firm is shifting personnel from its mobile division to focus on Application-Specific Integrated Circuits (ASICs) and AI.
This move comes as surging demand for generative AI and Large Language Model (LLM) computing prompts cloud service providers (CSPs) to seek custom silicon solutions.
Chasing the “New Blue Ocean”
Insiders reveal MediaTek is restructuring to target data centres and automotive electronics, viewing them as a “new blue ocean.” The company is reportedly transferring mobile engineers to build a custom IC team of approximately 1,000 employees.
This workforce shift supports high-end projects like Google’s Tensor Processing Units (TPUs). Although the company’s ASIC division has seen success in automotive and telecom, the complexity of next-gen AI chips (specifically those using 3nm process technology) demands a higher concentration of engineering talent.
Riding the Google Wave
Strong momentum from Google drives this shift. Sources state Google’s eighth-generation TPU will enter mass production in Q3 2026, with volumes projected to hit 5 million units in 2027 and 7 million in 2028.
To meet demand, MediaTek and Broadcom have reportedly increased 2026 wafer starts, cementing the chipmaker’s role in the supply chain for a top AI infrastructure builder.
Technical Edge and Future Clients
Analysts cite MediaTek’s investment in SerDes (Serializer/Deserializer) technology as a competitive advantage. Essential for high-speed transmission, MediaTek’s 112Gb/s SerDes is viable at 4nm, while its 224G SerDes, crucial for next-gen data centres, is now silicon-proven.
Ambitions extend beyond Google. Supply chain speculation suggests MediaTek’s second major CSP client could be Meta, with projects potentially involving 2nm process technology slated for 2028.
Financial Outlook
This shift promises quick returns. CEO Rick Tsai noted the first ASIC project is on track, projecting roughly $1 billion in 2026 revenue, growing to several billion by 2027.
Observers see this “turning of the gun” as a fundamental transformation rather than a simple shuffle. As the smartphone market matures, MediaTek is betting its future on cloud AI and custom silicon.
