MediaTek reported revenue of NT$142.1 billion (US$4.64 billion) – down 5.5 percent quarter-over-quarter but up 7.8 percent year-over-year for the third quarter ended September 30, 2025.
The company said the year-over-year growth was driven by market share gains in AI-powered flagship smartphones and AI-enabled tablets.
MediaTek’s Mobile Phones business contributed 53 percent of total revenue, rising 4 percent from the previous year but declining 4 percent sequentially. In US dollar terms, this segment grew 13 percent year-over-year. MediaTek said demand for its Dimensity 9500 chipset exceeded expectations, powering devices such as the vivo X300 and OPPO X9 series in China, with expansion planned into India, Southeast Asia, and Europe by year-end.
MediaTek, which competes with US-based Qualcomm, expects mobile revenue to grow strongly in the fourth quarter of 2025, targeting more than US$3 billion in flagship smartphone revenue for 2025 – representing over 40 percent annual growth.
IDC report said global smartphone shipments rose 2.6 percent year-over-year to 322.7 million units in the third quarter of 2025. The market recovery was led by strong demand in the premium segment, with consumers upgrading to new devices featuring innovative designs and affordable AI capabilities. IDC expects this momentum to continue through the rest of 2025, supported by demand for AI-enabled smartphones, competitive pricing, and extensive product lineups from major vendors.
The chart below — prepared by Omdia — shows performance of leading smartphone brands during the third-quarter of 2025.
MediaTek’s Smart Edge Platforms accounted for 42 percent of quarterly revenue, up 14 percent year-over-year and down 6 percent quarter-over-quarter. Growth was supported by rising AI adoption in tablets and strong global demand for connectivity products. MediaTek expects seasonal declines in Smart Edge revenues in Q4 but anticipates a sharp rise in automotive sales, driven by new e-cockpit launches from Chinese automakers. The company projects its automotive revenue to more than double year-over-year in Q4 and sees further momentum into 2026, aided by the upcoming CX-1 premium cockpit platform.
Power IC contributed 5 percent of total revenue, declining 4 percent year-over-year and 10 percent quarter-over-quarter.
For the fourth quarter, MediaTek forecasts revenue between NT$142.1 billion and NT$150.1 billion – flat to up 6 percent sequentially, and up 3 to 9 percent year-over-year. With this outlook, 2025 is projected to be a record year with over US$19 billion in total revenue.
Looking ahead, CEO Rick Tsai said MediaTek sees major opportunities in AI data center chips, Reuters news report said. The company expects to generate US$1 billion from its cloud AI accelerator ASIC chips in 2026 and multiple billions in 2027. MediaTek aims to capture 10 to 15 percent of the estimated US$50 billion total addressable market for data center ASICs within the next two years.
MediaTek has partnered with Nvidia to co-design the GB10 Grace Blackwell Superchip, powering Nvidia’s DGX Spark personal AI supercomputer launched this month. Tsai said Nvidia’s recent investment in Intel will not affect their collaboration.
Despite recent market headwinds, MediaTek remains optimistic about its AI-driven growth strategy across smartphones, automotive, and data centers. The company remains focused on scaling its AI leadership across multiple domains.
Fasna Shabeer
