MediaTek has revealed that its strategic focus on AI has played a significant role in its revenue growth in 2024.
The Taiwan-based technology company reported a 22.4 percent increase in its 2024 revenue, reaching NT$530,586 million.
Mobile phone customers accounted for 59 percent, Smart Edge Platforms 35 percent, and Power IC 6 percent of total revenue. The company’s fourth-quarter revenue was NT$138,043 million, up 4.7 percent quarter-over-quarter and 6.5 percent year-over-year, driven by the demand for Dimensity 9400.
Operating expenses for Q4 were NT$45,589 million (33 percent of revenue), compared with NT$40,483 million (30.7 percent of revenue) in the previous quarter and NT$37,881 million (29.2 percent of revenue) in the year-ago quarter, mainly due to R&D investments.
MediaTek’s R&D expenses were NT$36,752 million (26.6 percent of revenue), increasing from NT$33,261 million in the previous quarter and NT$30,472 million in the year-ago quarter.
MediaTek’s AI focus
MediaTek’s AI chipsets gained substantial market share in both smartphones and tablets, doubling its chipset revenue from smartphones to $2 billion in 2024. The adoption of its Dimensity 9400 chipset by major smartphone brands like OPPO and Vivo has been a key driver of this success.
The company’s flagship SoC revenue more than doubled, surpassing prior expectations of over 70 percent growth. MediaTek expects to see more Dimensity 9400 and 9300 series models in 2025. For 2025, global smartphone shipment is expected to increase at a similar pace as 2024, with the 5G penetration rate increasing to high-60s percent from mid-60s percent.
MediaTek expects ASP to benefit from the mix shift towards 5G and higher-priced AI-capable models. For the first quarter of 2025, MediaTek anticipates better-than-seasonal demand amid the smartphone stimulus program in China, expecting mobile revenue to grow moderately quarter-over-quarter.
“In 2025, smartphone vendors will prioritize ASP and profitability growth across segments while strengthening their market presence through diversified product portfolios, brand-driven marketing, and channel collaborations, Runar Bjorhovde, Analyst at Canalys, said in a report on the smartphone market.
MediaTek’s Smart Edge Platforms, which include AI-powered connectivity solutions, has also contributed significantly to revenue. The company saw a 30 percent rise in connectivity revenue from global telecom operators, driven by the adoption of Wi-Fi 7, 5G thin modems, and 10GPON solutions.
These AI-enabled innovations enhance wireless and wired connectivity, strengthening MediaTek’s position in the market.
MediaTek has secured design wins with leading Chinese and European car manufacturers in 2024 for automotive solutions, including the Dimensity Auto platform, cockpit, telematics, and power management IC solutions. The company’s focus on AI-powered automotive solutions aligns with the growing trend of intelligent and connected vehicles.
To maintain its competitive edge, MediaTek has substantially increased its research and development investments. In Q4 2024 alone, R&D expenses rose to NT$36,752 million, accounting for 26.6 percent of revenue. This increase underscores the company’s commitment to advancing AI capabilities across its product lines.
MediaTek’s AI-driven strategy has been instrumental in its revenue growth, enabling the company to strengthen its market presence in smartphones, connectivity, and automotive sectors.
Baburajan Kizhakedath
