Chip designer MediaTek says AI demand growth will continue 'for sure'

TAIPEI, Oct 30 (Reuters) - ‌Demand growth for ​AI ​will continue "for sure" although the rate may vary, said Rick Tsai, CEO of Taiwan's largest ‌chip designer MediaTek, on Friday.

Here are some details ⁠from the company's third quarter earnings call:

• Tsai said demand for ‌its first AI accelerator ‌remains strong, with initial shipments starting last month to generate $2.5 billion of revenue in Q4

• For the second ​AI accelerator project, high-volume production is on track for Q1 of 2028, he said

• The company reported ⁠third-quarter revenue of T$168.1 billion ($5.16 billion), up 18.3% from a year earlier. Net ​income rose 10.8% year-on-year to T$28.2 billion.

• MediaTek said in August it issued a record $3.9 ​billion in overseas convertible bonds, of ‌which Nvidia invested $3.5 billion. Alphabet also participated in the offering

• The company has been reducing ⁠its reliance on smartphones and aims to become a significant supplier of custom AI chips to major cloud providers

• MediaTek, ⁠a customer of the world's largest contract chipmaker TSMC, is the second-most ​valuable company on the Taiwan stock exchange, with a market capitalisation of $200 billion

• "TSMC is our most important partner, we are working ‌with them closely in every part of the technology chain," Tsai said

• MediaTek shares ‌closed down 3.2% on Friday ahead of the results. They ⁠have risen 174% this ‌year, compared with ​a 56% gain in Taiwan's benchmark index.

($1 = 32.5940 Taiwan dollars)

(Reporting by Ben Blanchard; Editing by Harikrishnan ‌Nair)

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