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MediaTek, the world's leading smartphone chip designer, is preparing to implement broad-based price increases across its product portfolio, even as the company scores a significant win in Google's next-generation AI accelerator supply chain.
Price Hikes Span Mobile SoCs and PMICs
As supply-chain cost pressures continue to build across the global semiconductor industry, MediaTek has formally notified customers that it can no longer absorb the full weight of escalating input costs. According to a customer letter signed by Chief Operating Officer and General Manager Joe Chen, the company cited five structural cost drivers behind the decision: unprecedented component shortages, constrained manufacturing capacity, extended supplier lead times, and rising raw material and logistics expenses.
Supply chain sources indicate that the price adjustments will affect multiple product lines, including mobile system-on-chips (SoCs) and power management ICs (PMICs), with increases expected to range from 10% to 15%. Market reports suggest that select customers have already received informal communications regarding the changes, and that the cumulative increase could reach as high as 20% across certain product categories. Industry observers note that expectations around a MediaTek price hike have been building for approximately two months, putting the move broadly in line with similar actions recently taken by memory makers and leading CPU vendors.
MediaTek Secures Google TPU v9 Orders via 336G SerDes Solution
Separately, MediaTek has reportedly secured a pivotal role in Google's next-generation TPU supply chain. According to supply chain sources, MediaTek has won major orders for Google's TPU v9 by successfully enabling the adoption of a proprietary 336G SerDes interconnect solution.
Google had originally targeted a 448G SerDes architecture for TPU v9 with the goal of substantially boosting accelerator bandwidth. However, that approach encountered persistent challenges related to signal integrity, power consumption, and thermal management, creating an opening for MediaTek's competing solution. Broadcom, which had been the front-runner with its own 448G SerDes development, is said to have lost its leading position for now, constrained by technology maturity and product timeline pressures. Industry analysts further note that the digital signal processors (DSPs) required to support 448G optical modules may need to be fabricated on a 2nm process node, with meaningful production capacity unlikely to materialize before 2028–2029.
AI ASIC Revenue Poised for Multi-Billion Dollar Growth
Beyond the Google design win, MediaTek's AI ASIC business is said to be gaining broader traction among cloud service providers (CSPs), with additional design wins anticipated to emerge over the coming years. Analysts have raised their forecasts for MediaTek's AI accelerator ASIC revenue to approximately US$2 billion for 2026, with the figure projected to scale to several billion dollars in 2027 as AI infrastructure deployments continue to expand globally.
Price Hikes Span Mobile SoCs and PMICs
As supply-chain cost pressures continue to build across the global semiconductor industry, MediaTek has formally notified customers that it can no longer absorb the full weight of escalating input costs. According to a customer letter signed by Chief Operating Officer and General Manager Joe Chen, the company cited five structural cost drivers behind the decision: unprecedented component shortages, constrained manufacturing capacity, extended supplier lead times, and rising raw material and logistics expenses.
Supply chain sources indicate that the price adjustments will affect multiple product lines, including mobile system-on-chips (SoCs) and power management ICs (PMICs), with increases expected to range from 10% to 15%. Market reports suggest that select customers have already received informal communications regarding the changes, and that the cumulative increase could reach as high as 20% across certain product categories. Industry observers note that expectations around a MediaTek price hike have been building for approximately two months, putting the move broadly in line with similar actions recently taken by memory makers and leading CPU vendors.
MediaTek Secures Google TPU v9 Orders via 336G SerDes Solution
Separately, MediaTek has reportedly secured a pivotal role in Google's next-generation TPU supply chain. According to supply chain sources, MediaTek has won major orders for Google's TPU v9 by successfully enabling the adoption of a proprietary 336G SerDes interconnect solution.
Google had originally targeted a 448G SerDes architecture for TPU v9 with the goal of substantially boosting accelerator bandwidth. However, that approach encountered persistent challenges related to signal integrity, power consumption, and thermal management, creating an opening for MediaTek's competing solution. Broadcom, which had been the front-runner with its own 448G SerDes development, is said to have lost its leading position for now, constrained by technology maturity and product timeline pressures. Industry analysts further note that the digital signal processors (DSPs) required to support 448G optical modules may need to be fabricated on a 2nm process node, with meaningful production capacity unlikely to materialize before 2028–2029.
AI ASIC Revenue Poised for Multi-Billion Dollar Growth
Beyond the Google design win, MediaTek's AI ASIC business is said to be gaining broader traction among cloud service providers (CSPs), with additional design wins anticipated to emerge over the coming years. Analysts have raised their forecasts for MediaTek's AI accelerator ASIC revenue to approximately US$2 billion for 2026, with the figure projected to scale to several billion dollars in 2027 as AI infrastructure deployments continue to expand globally.