MediaTek, one of the world’s leading mobile chip companies, is pivoting to an automotive and AI chipmaking focus.
MediaTek designs chips that are used in some of the most popular phones, tablets, TVs, and other electronic devices. Amid a changing semiconductor landscape, the company is pivoting to focus on automotive and AI chips, according to a new report by Reuters.
“In this very demanding environment, we are not reducing people,” CEO Rick Tsai said in an earnings call. “We’re not increasing either. The critical thing is to allocate those precious resources,” he said.
“We’re confident that we will be able to provide the capability to our customers,” Tsai said, speaking of the ability to create chips for the AI market.
The automotive industry has increasingly relied on high-tech chips to power everything from infotainment systems to improved fuel regulation. With the move to electric vehicles and autonomous driving, that demand is increasing, making it an appealing market for chipmakers struggling with the falling demand for consumer electronics.
“Demand for certain consumer electronics such as smartphones is weaker than we expected,” Tsai said. “As customers remain cautious about future demand, we expect our mobile revenue to be flattish in the second quarter and to improve in the second half.”
Tsai’s announcement is good news for the automotive industry, which has been plagued with shutdowns and reduced production as a result of a shortage of available chips.