MediaTek pivots from mobile chips to AI accelerators and automotive ASICs

MediaTek may be reshaping its product priorities, shifting focus from mobile processors to specialized AI accelerators. According to Taiwan’s CTEE, the company has begun reallocating resources and staff from its mobile SoC unit toward AI ASICs and automotive chips—markets with strong growth potential and lighter competitive pressure.

The shift is already visible in MediaTek’s collaboration with Google. The company took part in developing the TPU v7 Ironwood, handling I/O modules—marking a break from Google’s earlier pattern of working almost exclusively with Broadcom. MediaTek plans to deepen the partnership: mass production of the new TPU is slated for the third quarter of 2026, with output potentially reaching 5 million chips in 2027 and 7 million in 2028.

To support that scale, MediaTek is expanding production and building a dedicated team for its ASIC business. The company points to its in-house SerDes technology as a key edge, enabling high-speed, energy-efficient links between processors and memory. It already uses 112 Gbit/s SerDes on a 4 nm process, and a 224 Gbit/s solution is in development, aimed at data centers and advanced chip packaging.

MediaTek expects to generate around $1 billion from ASICs in 2026 and lift revenue to several billions in 2027. Beyond Google, the company is seeking additional partners. Inside the industry, this is described as a structural shift in MediaTek’s business model, with AI becoming the main engine of growth.

Even so, the Dimensity lineup remains competitive for now, especially with future flagships set to move to TSMC’s 2 nm process. Yet the resource shift raises a fair question: how long can MediaTek keep mobile chip development on a fast track while Apple and Qualcomm set the pace?