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Mobile chip segment drives MediaTek’s revenue growth

MediaTek, a chipmaker based in Taiwan, more than doubled its revenue growth to $18 billion dollars compared to $8 billion in 2019. The growth, according to the company, is driven by the strong market in the mobile segment which accounts for 54% of revenue growth.

MediaTek’s mobile segment hurdled the headwinds in the supply chain challenges that plagued the semiconductor industry during the pandemic, caused by border restrictions. Citing a report by the industry analyst firm IDC, the company said it was able to hold on the top spot of the chipset market for two consecutive years: 2021 and 2022.

Its flagship product Dimensity, particularly the Dimensity 9200, enabled the company to capture 20% of the Android flagship market share in China by 2022, compared to 0% in 2021. Because of this, MediaTek is resolved to continue developing and expanding this flagship product.

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“As the semiconductor industry and the world emerge from the global pandemic, some inventory issues have built up due to semiconductor shortages and as consumer spending has become more frugal during the pandemic,” Finbarr Moynihan, VP of Marketing, MediaTek, said in a virtual media briefing held for the Philippine media recently. “This has and will cause some challenges in 2023.”

The company, however, remained agile in managing user demand and supply issues. As a result, MediaTek was able to keep a market share of 41-42% even if it is lower in 2022.

Other markets

Following the recent announcement of its partnership with NVIDIA to power the automotive industry leveraging artificial intelligence or (AI), MediaTek also noted that it will be improving its presence in other markets particularly the Internet of Things (IoT).

“IoT is a much larger and more fragmented market that requires a very different approach to the market,” said Chinlin Low, technical director of MediaTek APAC. “Our IoT chipsets are widely adapted into various verticals, such as Smarthome (smart fitness, smart appliance), AIDC (logistics and warehouse), and Smart retail (Payment POS, Desktop POS). 

The IoT platform that MediaTek currently has is MediaTek Genio, which has all kinds of products, from low-end to high-end, that can support the Genio platform. 

For Dimensity Auto, MediaTek boasts of Dimensity Auto capabilities that include Auto Cockpit, Auto Connect, Auto Drive, and Auto Components.

Satellite and robotics

One of the technologies introduced by MediaTek this year is satellite connectivity called 5G NTN. The company launched the first 5G satellite chip, which enables the world’s first smartphone with 5G messaging service. At present, mobile networks cover just over 60% of the world’s population and less than 12% of the planet, leaving many dead zones and gaps around the world. However, with 5G NTN, it becomes possible to provide coverage for this entire area.

To achieve this, MediaTek has developed standard tools such as IoT-NTN and NR-NTN. They will begin rolling out IoT-NTN to consumers, allowing devices to go beyond terrestrial coverage. In their first satellite chip, MediaTek will introduce IoT-NTN for 5G messaging service. Furthermore, by the end of next year, MediaTek plans to incorporate NTN into smartphones, enabling voice calls and even some data browsing in remote areas.

Also, MediaTek is extending into new verticals like Industrial IoT and robotics. 

“We are already engaging with local companies to develop modules and help train the hardware developers to use MediaTek chipsets for their products,” the company said.

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