Taipei: Taiwan-based IC designer MediaTek Inc. announced on Thursday that while its revenue in the second quarter of 2026 is anticipated to remain flat or decline due to cautious market demand, the company still forecasts an annual growth rate of nearly 10 percent.
According to Focus Taiwan, during an online investor conference, MediaTek projected its second-quarter revenue to be between NT$140.2 billion (US$4.43 billion) and NT$149.2 billion. This projection indicates a range from flat growth to a 6 percent decline from the first quarter and a 1-7 percent drop compared to the same period last year. The company reported a first-quarter revenue of NT$149.15 billion, marking a 0.7 percent decrease from the previous quarter, attributed to weaker smartphone chip sales.
MediaTek's gross margin in the first quarter increased by 0.2 percentage points from the fourth quarter of 2025, reaching 46.3 percent. The net profit attributable to the parent company rose by 5.36 percent to NT$24.15 billion, with earnings per share of NT$15.17, bolstered by a favorable product mix. CEO Rick Tsai mentioned that customer demand remains cautious in the short term, while a shift in resources toward data center development has heightened costs in the smartphone industry, leading to increased product pricing. He also noted that global smartphone shipments are expected to decrease by about 15 percent this year.
Despite these challenges, MediaTek anticipates a recovery in its mobile chip business in the latter half of the year, with flagship smartphones powered by the company's 2-nanometer chips set to launch late in the third quarter. The company's smart device platform, which includes connectivity, computing, and automotive applications, is predicted to achieve double-digit growth this year, driven by market share gains and rising DRAM prices for certain TV chips. However, this forecast excludes contributions from application-specific integrated circuits (ASICs) for data centers.
Revenue from power management ICs is projected to remain largely unchanged in the second quarter. Despite the near-term headwinds, Tsai stated that MediaTek aims to maintain its full-year gross margin within the second-quarter guidance range of 44.5-47.5 percent through disciplined pricing strategies.