MediaTek, Taiwan’s leading chip design company, is focusing on chips for AI computing and cars as its smartphone customers face a glut of supply and inflation and macroeconomic uncertainties dent the demand for consumer electronics.
Rick Tsai, Chief executive of MediaTek Inc (2454.TW), said during an earnings call that the company is moving rapidly to the automotive and computing sectors.
In this highly demanding environment, people are not being reduced. We are not growing either. “The critical thing is how you allocate these precious resources,” said he.
Tsai claimed that everyone, including MediaTek was rushing to make claims about their ability to support artificial intelligence generative, such as ChatGPT.
Tsai stated, “We are confident that we can provide this capability to our clients.”
Tsai stated that MediaTek invests heavily in AI, because the areas of focus are all computing-related. AI chips are needed for the development of autonomous cars, for example.
The company is expecting signs of recovery in the second half of this year, despite the fact that smartphone demand was disappointingly low during the first quarter.
Tsai stated that the demand for consumer electronics, such as smartphones, was lower than expected. As customers remain cautious regarding future demand, Tsai said that he expects mobile revenue to flatten in the second quarter but improve in the latter half.