MediaTek Shifts Focus to Cars, AI Amid Supply Glut in Smartphone Market

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Prime Taiwanese chip maker MediaTek is focusing extra assets on automotive chips and synthetic intelligence as its smartphone clients face a provide glut and inflation and macroeconomic uncertainty dampen demand for client electronics.

“We’re actually transferring our assets very, in a short time into the automotive and computing industries as a result of these industries will drive our progress in the subsequent three to 5 years,” MediaTek Chief Govt Rick Tsai mentioned on an earnings name.

“On this very difficult setting, we aren’t shedding individuals. We aren’t growing both. It’s important to allocate these treasured assets,” he mentioned.

Tsai mentioned that everybody, together with MediaTek, has been fast to declare that they’re able to supporting generative AI like ChatGPT.

“We’re assured that we are going to find a way to present alternatives for our clients,” Tsai mentioned.

MediaTek is investing closely in synthetic intelligence as a result of all the brand new areas the corporate is specializing in are associated to computing, Tsai mentioned. Growing autonomous automobiles, for instance, requires AI chips.

Whereas demand for smartphones remained weak in the primary quarter, the corporate expects indicators of restoration later this yr.

“Demand for sure client electronics akin to smartphones is decrease than we anticipated,” Tsai mentioned. “As clients stay cautious about future demand, we count on our cellular income to be flat in the second quarter and to enhance in the second half.”

© Thomson Reuters, 2023

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