MediaTek confirms second AI ASIC customer, targets 2028 volume production
In brief
- MediaTek disclosed a second custom AI chip customer on its October 30 earnings call.
- Volume production for the new customer is targeted for 2028; co-design work is already underway.
- The buyer isn't a Chinese firm, MediaTek said, pushing back on earlier ByteDance speculation.
- Q3 2026 consolidated revenue rose 18.3% year-on-year to NT$168.06 billion.
- MediaTek raised its 2027 ASIC revenue target to approximately $16 billion. It's a target, not a result.
What MediaTek disclosed
According to Crypto Briefing's report on the earnings call, co-design work with the second customer is already underway. MediaTek didn't name the buyer. It did say the customer has no link to Chinese firms, which pushed back on earlier market speculation that ByteDance was behind the deal.
The first chip is already shipping, just not in large numbers. MediaTek began small-volume shipments of its first AI accelerator ASIC in September 2026, and CEO Rick Tsai cited strong demand for the product.
Its latest-generation ASIC uses advanced multi-die packaging, and several of those dies have already been taped out, per the company. The more complex versions are scheduled to enter mass production by the first quarter of 2028. MediaTek said it expects the second generation to deliver performance-per-watt gains several times better than the first, along with a lower total cost of ownership for customers.
The numbers behind it
MediaTek reported double-digit growth in both revenue and profit for the third quarter. Consolidated revenue came in at NT$168.06 billion, up 10.4% quarter-on-quarter and 18.3% year-on-year.
The forward-looking figures are bigger. MediaTek projected data center revenue of $2.5 billion in the fourth quarter of 2026 and raised its 2027 ASIC revenue target to approximately $16 billion. The company estimated that figure could translate into around 20% of the AI accelerator market.
Those are targets, not booked results.
Why a second customer matters
Crypto Briefing framed the news around concentration risk. The outlet noted that revenue concentration is a classic risk for custom chip suppliers, and that diversifying the customer base makes the $16 billion target look less fragile.
There are caveats, though, and the same report spells them out. The first ASIC is only in small-volume shipments, and the second customer's chips aren't expected in mass production until 2028. The nearest figure MediaTek has put on the table is its fourth-quarter projection of $2.5 billion in data center revenue.
Frequently asked questions
Who is MediaTek's second AI ASIC customer?
MediaTek didn't name the customer on its Q3 2026 earnings call. It said the buyer isn't a Chinese firm, which pushed back on earlier market speculation that ByteDance was behind the deal.
When will MediaTek's chips for the second customer enter production?
MediaTek said co-design work with the second customer is already underway, with volume production targeted for 2028. The company didn't give a more specific date for that customer's chips.
What is MediaTek's 2027 ASIC revenue target?
MediaTek raised its 2027 ASIC revenue target to approximately $16 billion. The company estimated that could translate into around 20% of the AI accelerator market. It's a target, not a booked result.
