Smartphone chipset revenues for MediaTek crossed $10 billion for Q4 2025, with SoCs like the Dimensity 9500 and Dimensity 8500 contributing to those figures as the Taiwanese firm targets a wider adoption of its premium silicon. However, with this segment accounting for a whopping 59 percent of the total quarterly revenue, MediaTek could face some trouble down the road, as previous estimates have stated that the company will face a decline in chipset shipments in 2026, thanks to rising DRAM and NAND flash costs, but will still hold the top position this year over its rivals. A closer look at the firm’s plans reveals how it plans to diversify, as the journey ahead will have its fair share of pitfalls.
Segments like Smart Edge, ASICs, and Connectivity are areas where MediaTek is concentrating, as smartphone chipset revenue is expected to decline quarter-over-quarter
Due to its heavy reliance on smartphone chipset revenue, MediaTek has been reported to be struck the hardest out of all SoC makers for 2026. Counterpoint Research has commented that smartphone demand faces pressure from rising memory costs, which will increase the Bill of Materials (BoM) this year. The Dimensity 9600, MediaTek’s first 2nm silicon, should have a pricing advantage over the Snapdragon 8 Elite Gen 6 Pro and Snapdragon 8 Elite Gen 6 this year, but in light of the DRAM crisis, MediaTek plans to focus heavily on other businesses, as detailed below:
- Smart Edge - This segment is expected to offset the decline in mobile chipset revenue in Q1 2026. Additionally, Smart Edge growth was recorded at 18 percent year-over-year in Q4 2025.
- ASIC - Data center revenue is expected to exceed $1 billion, with strong hyperscaler demand starting in 2028.
- Connectivity - With revenue surpassing $3 billion in 2025, MediaTek’s 5G modems and Wi-Fi 7 chips are in strong demand, with Wi-Fi 8 adoption expected to begin towards the end of 2026.
The automotive business is also ripe for the taking, with MediaTek expanding its presence beyond cockpit and telematics with its ADAS (Advanced Driver Assistance Systems) entry, thanks to a partnership with DENSO. The Taiwanese fabless semiconductor manufacturer has also formed a tag-team with NVIDIA, with the N1 and N1X chips expected in H2 2026, and designed for low power consumption and high compute to take on Apple Silicon and Qualcomm’s Snapdragon family.
With its Q1 2026 guidance at $4.5-$4.8 billion, down 6 percent sequentially, MediaTek’s Power IC revenue is expected to remain flat in the first quarter. With smartphone earnings declining, it is up to the other segments to provide some financial cushion for the company.
News Source: Counterpoint Research
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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