Key Takeaways
- MediaTek is expanding beyond smartphones into automotive, IoT, and AI, projecting substantial growth in these areas.
- The company anticipates its AI accelerator ASIC business could generate billions by 2027, aligning with India’s tech progression.
- Agentic AI is expected to drive demand for advanced devices and enhance premium smartphone adoption in India.
Expanding Horizons for MediaTek
MediaTek, a leading Taiwanese chipmaker, is broadening its focus beyond smartphones as it aims to capitalize on emerging markets in automotive, Internet of Things (IoT), and artificial intelligence (AI). The company anticipates its AI accelerator ASIC (Application-Specific Integrated Circuit) business will generate billions by 2027, emphasizing India’s pivotal role in driving AI adoption among a broader user base.
At Computex 2026 in Taipei, MediaTek’s Vice President Rahul Sandil highlighted the shift towards “agentic AI.” This AI category encompasses intelligent assistants that autonomously perform tasks across various devices, which could revolutionize digital engagement in consumer and business sectors. Sandil noted, “Agentic AI increasingly is OS agnostic. It is form-factor agnostic. It is device agnostic.”
Despite ongoing investments in premium smartphones, MediaTek sees significant growth potential by merging AI with connected devices and automotive technology. Sandil indicated that consumer interest in devices over $400 is climbing, partly driven by the appeal of agentic AI. This demand aligns with the company’s growth strategy that includes IoT, which is gaining traction in applications like robotics, drones, and smart agriculture.
“IoT for us is very exciting,” Sandil remarked, confirming the increasing relevance of IoT in expanding their market presence. The automotive sector also presents considerable opportunities, as MediaTek develops technologies for connectivity, telematics, and advanced driver-assistance systems (ADAS), especially through its collaboration with NVIDIA.
As vehicles become more reliant on software and AI, the demand for sophisticated automotive computing is expected to rise. Sandil noted that while direct contributions from automotive technologies are promising, the industry trends unfolding in China are likely to influence the Indian market soon.
Additionally, MediaTek is positioning itself to benefit from the rapid growth of AI infrastructure. With the anticipated market size for data center ASIC chips estimated at $70 billion to $80 billion by 2027, the demand for specialized silicon designed for efficient machine learning workloads is set to increase.
Sandil stated, “Data center for us is going to be important… I’m rooting for India to build several gigawatt data centers.” As AI workloads grow and evolve, MediaTek sees valuable opportunities in custom silicon, extending its engagement across the AI value chain from consumer devices to cloud infrastructure and automotive solutions.
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