MediaTek’s Strong Revenue Growth and Exciting Innovations 1st Quarter 2023

On June 20, 2023, MediaTek hosted an online event, the “MediaTek Coffee Session 2023.” The event provided insights into MediaTek’s current business situation, key developments in the mobile segment, progress in the Chromebook market, and advancements in the Internet of Things (IoT) segment. Additionally, updates on 5G innovations and opportunities in the Philippines were highlighted, showcasing MediaTek’s commitment to driving technological advancements and local engagement.

MediaTek Business Situation and Revenue Growth

Regarding MediaTek’s business situation, the company has experienced remarkable revenue growth in recent years. From approximately 8 billion USD in 2019, MediaTek’s revenue more than doubled, reaching an impressive 18.5 billion USD in 2022. The mobile segment contributed significantly, accounting for approximately 54% of the company’s revenue, followed by Smart Edge Platforms at around 39% and Power IC at 7%. However, challenges emerged in 2023 due to semiconductor shortages and frugal consumer spending during the pandemic, resulting in a decline of 11% in Q1/2023 compared to Q4/2022, emphasizing the importance of adapting to changing market dynamics.

Mobile Segment

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In the mobile segment, MediaTek maintained its position as the leading mobile chipset supplier, holding the top spot in 2021 and 2022, as reported by analytics company IDC. Despite some market share loss in the 4G segment in 2022, MediaTek remains committed to regaining its position. Notably, MediaTek introduced the second-generation flagship product, Dimensity 9200, which received significant market share and propelled MediaTek to capture over 20% of the Android flagship market share in China by 2022. The company plans to continue investing in the flagship line to drive further growth.

Moreover, MediaTek’s premium tier, including the recently announced Dimensity 8200, has been successful. Unlike competitors who often utilize older generation flagship products in this segment, MediaTek stands out with highly optimized and integrated solutions. In the mid-range high-end series, MediaTek introduced Dimensity 7200, featuring TSMC 4nm technology and bringing selected features from the ultra-premium segment to mid-range devices. Noteworthy devices utilizing MediaTek chipsets include vivo X90, vivo X90 Pro, OPPO Find X6, OPPO Find N2 Flip, Tecno Phantom V Fold, and OnePlus Pad.

Chromebook Segment

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Shifting the focus to the Chromebook segment, MediaTek’s Kompanio Chromebook has seen substantial success. Despite facing inventory challenges similar to other market segments, MediaTek remains optimistic about the future of Chromebooks. As the second-largest ARM-based Chromebook solution provider and the leading ARM-parts Chromebook supplier, MediaTek offers a differentiated solution with low power consumption, built-in SoC, and ARM technology. Chromebooks provide extended battery life, thinner and lighter designs, and cost-effective options for education, consumers, and even commercial use.

The MediaTek Kompanio lineup covers a comprehensive solution roadmap, catering to various needs. The Kompanio 500 series and the recently launched Kompanio 520/528 significantly enhance power and performance, while the Kompanio 800 and Kompanio 1000 series target high-end, mid-range, and premium Chromebooks, expanding MediaTek’s reach in the consumer and commercial markets.

IoT Segment and Industrial Applications

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In the IoT segment, MediaTek acknowledges the unique challenges and opportunities presented by this fragmented market. Leveraging its strength in verticals such as smartphones, tablets, and TVs, MediaTek focuses on cost and power consumption as key drivers for IoT adoption. MediaTek’s IoT platform, Genio, offers a wide range of products that support diverse applications across different price points. Notably, smart city, smart home, and smart factory applications are experiencing notable growth.

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MediaTek is actively collaborating with local companies in the Philippines to develop modules and train hardware developers, enabling the adoption of MediaTek chipsets in industrial IoT and robotics. These partnerships aim to drive innovation, reduce time to market, and empower the local ecosystem.

Updates on 5G Innovation

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During the MediaTek Coffee Session, updates on 5G innovations were a key highlight. MediaTek outlined its two-phase 5G development approach: 5G phase and 5G F-1 phase. The company showcased various use cases, including enhanced mobile broadband (eMBB), massive machine-type communications (mMTC), ultra-reliable low-latency communications (URLLC), network slicing, and Redcap. These use cases aim to enhance user experiences, enable real-time response, optimize power efficiency, and ensure seamless network connectivity.

Additionally, MediaTek introduced the concept of Adaptive Transmission System Selection and Scheduling (ATSSS), which enables seamless switching between 5G and Wi-Fi networks, optimizing connection reliability and latency. MediaTek also presented 5G Redcap, a technology tailored for low-latency applications such as smartwatches, augmented reality (AR) glasses, and various IoT devices.

Furthermore, MediaTek’s 5G NTN (Non-Terrestrial Network) solution extends coverage to remote areas, allowing voice calls and data browsing even in areas without traditional network coverage. This innovation has the potential to bridge the digital divide and bring connectivity to underserved regions.

In conclusion, MediaTek’s Coffee Session 2023 showcased the company’s impressive revenue growth, dominance in the mobile segment, successful foray into the Chromebook market, expanding presence in the IoT segment, and notable advancements in 5G technologies. As MediaTek continues to innovate and collaborate, its commitment to local engagement and driving technological progress remains evident. The company’s vision and dedication position it as a key player in the semiconductor industry, ready to shape the future of connected devices and enable transformative experiences worldwide.

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