Data Center Opportunities Accelerate MediaTek’s Diversification Strategy

MediaTek’s 2026 Analyst Day, held in San Francisco recently, provided detailed updates on the company’s brand strategy as well as its data center, compute, IoT and connectivity business units. The presentations were very compelling and told a story of great technology, roadmaps and opportunities. The company is focusing on more powerful solutions with higher ASPs. The goal is to have leadership in flagship compute and HPC and data center revenues could be a game changer for the company.

Data center revenues could grow from $1 billion in 2026 to a multi-billion-dollar figure in 2027. The company could look vastly different in three years as it further diversifies from smartphone AP SoCs.
Partnerships with NVIDIA, Microsoft and Google will foster large revenue recognition in the coming years, while also giving MediaTek a lot of street cred among blue-chip companies, as both a partner and a customer.
The strong and close partnership with TSMC continues. But ties to Intel and Global Foundries offer diversification and improve MediaTek’s position in demanding capacity allocation, as the company warned of tight availability for the next 2-3 years for fabless semiconductor companies.
‘Dimensity’ brand awareness is growing, a lot. The company is simplifying its marketing message. Brand recognition is also supported by key partnerships such as NVIDIA.
IoT ASPs are likely to grow substantially as more performance is needed for edge devices. MediaTek has a roadmap for solutions providing 1-10 TOPS performance. However, customers are asking for more, driven by robotics, security, and other business units.
Within mobile, MediaTek remains #1 in units. Its discrete modem business will see higher revenues as a new Tier 1 vendor will launch a new smartphone with a MediaTek modem. FWA and wearables (due to Redcap launches) revenues doubled in 2025 and remain a tailwind.

Author

Jeff Fieldhack

Jeff has 25+ years experience in technology research, business development, competitive intelligence, and business management. Prior to joining Counterpoint Research, Jeff held various research & product development roles at Microsoft, Nokia, Roth Capital Partners, and Gartner. Jeff is a member of many telecom industry organizations including Colorado Wireless Association, repair.org, CommNexus, and is a regular speaker at major telecom industry events. He was a 4x NCAA all-American in tennis and is a 12-time finisher of the Hawaii Ironman World Championships.

Data center revenues could grow from $1 billion in 2026 to a multi-billion-dollar figure in 2027. The company could look vastly different in three years as it further diversifies from smartphone AP SoCs.
Partnerships with NVIDIA, Microsoft and Google will foster large revenue recognition in the coming years, while also giving MediaTek a lot of street cred among blue-chip companies, as both a partner and a customer.
The strong and close partnership with TSMC continues. But ties to Intel and Global Foundries offer diversification and improve MediaTek’s position in demanding capacity allocation, as the company warned of tight availability for the next 2-3 years for fabless semiconductor companies.
‘Dimensity’ brand awareness is growing, a lot. The company is simplifying its marketing message. Brand recognition is also supported by key partnerships such as NVIDIA.
IoT ASPs are likely to grow substantially as more performance is needed for edge devices. MediaTek has a roadmap for solutions providing 1-10 TOPS performance. However, customers are asking for more, driven by robotics, security, and other business units.
Within mobile, MediaTek remains #1 in units. Its discrete modem business will see higher revenues as a new Tier 1 vendor will launch a new smartphone with a MediaTek modem. FWA and wearables (due to Redcap launches) revenues doubled in 2025 and remain a tailwind.