MediaTek’s Q3 revenue was NT$142 billion (~US$4.45 billion), down slightly from last quarter but up 7.8% from last year. The company saw market share gains in AI-powered smartphones and tablets. Despite a dip in gross margin, MediaTek’s future looks bright, with significant AI growth opportunities and a record-breaking revenue forecast of over $19 billion NT$ for 2025. They’re also making strides in automotive and innovation, with a new 2nm chip launch planned for 2026. The company is on track and thriving.
The third-quarter revenue for MediaTek was NT$142,097 million (US$4.45 million), down -5.5% quarter over quarter and up 7.8% year over year (NT$). The quarter-over-quarter decrease was mainly due to some customers pulling in orders to the first half of the year. The year-over-year increase was mainly due to market share gains in AI flagship smartphone and AI tablet.
The third-quarter gross profit was NT$66,112 million, down -10.5% quarter over quarter and up 2.7% year over year. Gross margin for the quarter was 46.5%, down -2.6 percentage points quarter over quarter and -2.3 percentage points year over year. The quarter-over-quarter decrease in gross margin was mainly attributable to a onetime item in the previous quarter, which increased gross margin by 1.9 percentage points. The year-over-year decrease mainly reflected gross margin changes in certain products.
Figure 1. MediaTek’s sales and profits expressed in US dollars over time. (Source: MediaTek and JPR)
MediaTek delivered its third-quarter earnings, which slipped a bit from the last quarter but jumped 8.5% (NT$) from the same period last year. Sales haven’t taken off yet for the newly-launched Nvidia DGX Spark, featuring the GB10 Superchip co-designed by MediaTek. The project is a continuation of MediaTek’s history of collaboration with Nvidia to advance AI innovation from supercomputers to vehicles, IoT devices, data center solutions, and beyond.
Founded in 1997, MediaTek says it powers over 2 billion connected devices every year, from smartphones to smart TVs, home entertainment, and home automation, to technology, both wireless and wearable. But the GB10 puts the company in the AI-training and inferencing markets. The new Dimensity 9400e smartphone chip is also used for AI inference at the edge, and the Genio 700 is an edge-AI IoT platform for retail, industrial, and smart home devices.
Operating expenses for the quarter were NT$43,924 million (30.9% of revenue), which decreased slightly from NT$44,499 million (29.6% of revenue) in the previous quarter and increased from NT$40,483 million (30.7% of revenue) in the year-ago quarter. The year-over-year increase was mainly due to continued R&D investments.
Figure 2. MediaTek organization. (Source: company)
Operating expenses for the quarter included:
• R&D expenses of NT$36,353 million (25.6% of revenue), decreased from NT$36,923 million in the previous quarter and increased from NT$33,261 million in the year-ago quarter.
• Selling expenses of NT$4,984 million (3.5% of revenue), increased from NT$4,944 million in the previous quarter and NT$4,237 million in the year-ago quarter.
• Administration expenses of NT$2,588 million (1.8% of revenue), decreased from NT$2,632 million in the previous quarter and NT$2,985 million in the year-ago quarter.
The company’s outlook sees significant AI growth opportunities and is on track to meet its cloud ASIC revenue targets. The company expects its auto revenue to more than double in Q4 2025, with momentum continuing into 2026. In terms of innovation, MediaTek completed its first 2nm tape-out with TSMC and is set to launch 2nm chips in 2026.
The company says its 2025 outlook is on track for a record year with more than $19 billion in NT$ revenue.
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