MediaTek Warns of AI-Driven Chip Supply Strain, Signals Price Hikes
Photo Credit: @MediaTek
Taiwan’s leading chip design company MediaTek has warned that the rapid rise in artificial intelligence demand is putting heavy pressure on global supply chains and increasing costs, prompting the company to adjust its product prices.
Speaking during a quarterly earnings call, MediaTek CEO Rick Tsai said the AI boom is acting as a major growth driver for the semiconductor industry but is also creating supply challenges that may continue into 2026. He noted that suppliers across the value chain are struggling to keep up with rising demand, leading to higher overall costs.
As a result, MediaTek plans to revise its pricing and prioritise supply allocation based on profitability, though specific details were not shared. Tsai reiterated that MediaTek expects to generate billions of dollars in revenue from its AI accelerator ASIC chips by 2027, supported by strong demand from data centres.
He also raised the estimated total market for data centre ASIC chips to between $50 billion and $70 billion, reflecting the expanding role of AI. MediaTek has partnered with Nvidia to co-develop the GB10 Grace Blackwell Superchip, which powers Nvidia’s DGX Spark personal AI supercomputer.
The company reported fourth-quarter revenue growth of 8.8 percent year-on-year, while profit dipped slightly. MediaTek shares have risen sharply this year, outperforming the broader market, as investor confidence in AI-led growth remains strong.
Source: The Economic Times
