MediaTek, Taiwan’s largest chip design company, faces oversupply, inflation and macroeconomic uncertainty as smartphone customers grapple. Due to the falling demands for consumer electronics, MediaTek is rapidly shifting its focus to automobile and artificial intelligence computing platforms.MediaTek will focus on artificial intelligence and cars
“We are definitely shifting our resources very quickly into the automotive and computing areas, as these areas will enable us to grow over the next three to five years,” said Rick Tsai, MediaTek Chief Executive Officer. MediaTek will not reduce the number of employees in this rapid transformation process. Therefore, existing teams will be allocated to other, more valuable resources, not the consumer electronics side. This was already signaled a few weeks ago with MediaTek Dimensity Auto.
Tsai states that everyone, including MediaTek, is racing to provide products that can support productive AI like ChatGPT. Tsai underlines that MediaTek has invested heavily in artificial intelligence because the company’s new areas of focus are all about computing. If you look at the automobile industry, you can easily see that the future is in autonomous vehicles. Artificial intelligence chips need to be developed for this autonomy to occur.On the other hand, this does not mean that MediaTek will leave smartphones. The company expects the lackluster smartphone market to start to recover from the second half of the year. However, MediaTek is also aware that the situation is not good. According to Tsai, current demand for certain consumer electronics products is weaker than expected. For this reason, it can be considered normal for the company to shift to these areas as artificial intelligence and automobile platforms grow.
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