Q1 2026 MediaTek Inc Earnings Call Transcript
Key Points
- MediaTek Inc (TPE:2454) reported first-quarter revenue at the high end of guidance, driven by steady demand from diversified platforms and favorable exchange rates.
- The company is making significant progress in AI infrastructure, with its first AI accelerator ASIC project expected to contribute around USD2 billion in revenue in the fourth quarter.
- MediaTek Inc (TPE:2454) is actively engaged in new data center ASIC opportunities, with several projects in the final stages of discussion.
- The Smart Edge Platforms group saw a 23% quarter-over-quarter growth and a 13% year-over-year increase, driven by global market share gains.
- MediaTek Inc (TPE:2454) is investing in next-generation technologies, including a USD90 million investment in Air Labs for optical engines, and has announced a successful design with Microsoft Research for next-gen active optical cables.
- First-quarter revenue was down 0.7% sequentially and 2.7% year-over-year, indicating a decline in overall sales.
- Mobile Phone revenue declined 17% quarter-over-quarter and 15% year-over-year, with expectations of further sequential decline in the second quarter.
- The company anticipates global smartphone shipments to decline by about 15% this year due to elevated costs and market adjustments.
- Gross margin for the quarter decreased by 1.8 percentage points year-over-year, reflecting pressure on profitability.
- Operating income was down 23.8% year-over-year, highlighting challenges in maintaining profitability amidst market conditions.
Welcome to the MediaTek 2026 first quarter investors conference call. Financial results and presentations for today's call are available on Investors section of the company website at www.mediatek.com. Now I would like to turn the call over to Ms. Jessie Wang, Deputy Director of Investor Relations. Mr. Wang, please go ahead.
Good afternoon, everyone. Joining us today are Dr. Rick Tsai, MediaTek's CEO; and Mr. David Ku, MediaTek's CFO. Mr. Ku will report our first quarter results, and then Dr. Tsai will provide our prepared remarks. After that, we will open for Q&A.
As a reminder, today's presentation will provide forward-looking statements based on our current expectations. The statements are subject to various risks and factors, which may cause actual results to differ materially from the statements.
The presentation material supplement, non-TIFRS financial measures earnings distribution will be made in
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