MediaTek Invests $5 Billion in AI Data Center Chips

Taiwanese chipmaker MediaTek has announced a $5 billion investment to expand into AI data center chips, moving beyond its traditional smartphone processor business.

The company says it expects the market for custom AI chips to reach $80 billion by 2027. Its first AI data center chips will enter mass production later this year, with a second generation planned for 2028.

MediaTek hopes the new business will generate more than $2 billion in revenue by 2026.

The shift comes as smartphone sales continue to slow, reducing demand for mobile chips. MediaTek aims to compete with leading AI chip companies by supplying custom processors for cloud and data center customers.