MediaTek at its recent conference call “Coffee Session 2023”, details their business growth along with the key areas to focus this year. That includes their renewed commitment to the Philippines and the South East Asian market as a whole.
They also gave comprehensive updates about their mobile, chromebook, IoT, industrial and 5G sectors during the call – let us crunch the details below.
With regards to MediaTek’s business, the company reported a strong revenue growth rate, increasing from about 8 billion USD in 2019 to an impressive number of 18.5 billion USD in 2022. That’s more than double in a span of 3 years.
- In 2022, the mobile segment accounted for approximately 54% of MediaTek’s revenue.
- Smart Edge Platforms such as TV connectivity, smart speakers, smart displays, smarthome, tablets, Chromebooks, etc. totals at 39%.
- MediaTek’s Power IC, accounts for about 7%.
Now as the industry and the world emerges from the global pandemic, some inventory issues have built up due to semiconductor shortages and as consumer spending has become more frugal during the pandemic. Therefore, the company reports revenue in Q1 2023 only reached $3.3 billion which is down to 11% compared to Q4 2022.
In terms of mobile market share, MediaTek continuously holds position as the #1 mobile chipset supplier in 2021 and 2022 – according to IDC. Although in 2021, the semiconductor industry experiences supply problems during its worst period, MediaTek still does a great job in managing user demand and supply issues.
In the 4G segment however, MediaTek lost some market share in 2022, but are now working hard to regain it.
Chromebooks have been through an interesting cycle of seeing a dramatic increase during the pandemic, as more institutions transition to online teaching and people study from home or take classes online. MediaTek’s Kompanio Chromebook has been doing pretty well here, although sales have fallen a bit over the past few quarters due to inventory challenges similar to other segments.
Yet, MediaTek is still optimistic that Chromebook is a very innovative proposition for a lot of users in the future laptop category.
IoT and Industrial
MediaTek is very strong in verticals like smartphones, tablets, TVs, etc. IoT on the other hand is a much larger and more fragmented market that requires a very different approach. So, when looking at smart city, smart home and smart factory applications, MediaTek noticed a few things.
- First, people are focused more on cost and power consumption, and that’s causing a move away from traditional x86 architecture to ARM-based solutions, where MediaTek is very strong.
- The only IoT platform that MediaTek currently offer is Genio which is a platform encompassing low-end and high-end applications. The company aims to leverage this.
- MediaTek partners up with Nvidia for the Dimensity Auto. The two companies now work together to bring the best technology to the automobile industry.
In the 5G modem space, MediaTek has combined an APU with an AI processor, allowing 5G modems to provide real-time response and better power efficiency. With this, MediaTek can now use AI algorithms in the high-speed 5G environment to provide a seamless connected user experience.
In addition, MediaTek wants to turn the future of 5G into more devices such as smartwatches, AR glasses, entertainment devices and IoT.
Another exciting technology that MediaTek introduced this year is satellite connectivity. Dubbed as the 5G NTN, it is the first 5G satellite chip enabling the world’s first smartphone with 5G messaging service. The company will also introduce IoT-NTN for 5G messaging service in its first satellite chip. By the end of next year, MediaTek plans to adopt 5G NTN in smartphones to enable voice calls and data browsing even in remote areas.
With this first satellite chip, MediaTek has won many global awards at MWC, CES and also received a lot of good feedback from the leading technology media around the world.
MediaTek in the Philippines
MediaTek also announces its renewed direct engagement with local companies in the Philippines and reiterates its approachable communication between them and the local channels.
As for the industries located within the Philippines, MediaTek now offers Advanced HMI for companies to effectively monitor their workforce’s efficiency.
To sum it up, MediaTek has enjoyed a very strong revenue growth thanks to its diversified product portfolio over the past few years, largely due to the adoption of 5G and the shift to the flagship and premium segments in the mobile market.
Despite some short-term business challenges this year, MediaTek is actively investing in new areas for growth, some of which are Chromebooks and IoT, as well as consumer broadband for automotive operators, 5G, fixed wireless access and ASICs for business.
As a company, MediaTek continues to focus on the global market. Regardless, it is still in their interest to oversee growth and the driving trends from the Southeast Asian market – especially in the Philippines.