MediaTek targets billions in AI chip revenue by 2027 as it expands into data center market

The Taiwanese chipmaker strengthens partnerships with Google and Nvidia while unveiling an aggressive edge-to-cloud AI strategy

Taiwan-based semiconductor leader MediaTek has outlined an ambitious roadmap to generate billions of dollars in revenue from its AI accelerator business by 2027, signaling its entry into the high-stakes data center chip market. CEO Rick Tsai revealed that the company expects to achieve $1 billion in cloud AI chip sales in 2026, followed by “multiple billions” in 2027 as new projects scale. MediaTek aims to capture 10–15% of the rapidly growing $50 billion data center AI chip market within two years.

MediaTek’s aggressive expansion is backed by strategic collaborations and new design wins. The company has partnered with Nvidia to co-develop a superchip for DGX Spark, Nvidia’s upcoming personal AI supercomputer. Despite Nvidia’s recent $5 billion investment in Intel, Tsai said the partnership remains unaffected.

In a major coup, Google has selected MediaTek as a design and manufacturing partner for its seventh-generation AI accelerator, Ironwood, moving away from Broadcom. Announced at Google Cloud Next ’25, the Ironwood chip boasts 192 GB of high-bandwidth memory—six times more than its predecessor—and can deliver 42.5 exaflops in a 9,216-chip cluster. This milestone positions MediaTek as a key player in large-scale AI compute.

Expanding from Edge to Cloud

At Computex 2025, MediaTek showcased its “AI for Everyone: From Edge to Cloud” strategy, featuring new Genio 720 and Genio 520 AIoT SoCs, optimized for smart homes, retail, and industrial automation. The chips, offering up to 10 TOPS of AI performance, entered sampling in Q2 2025, with mass production expected in early 2026.

MediaTek also confirmed that its first 2-nanometer chip design will reach tape-out by September 2025, with TSMC handling manufacturing.

Navigating a competitive AI landscape

The AI chip market is becoming increasingly competitive, with Qualcomm, Amazon, and Microsoft developing rival solutions. Despite this, analysts view MediaTek’s diversified portfolio—spanning edge AI, data centers, and automotive—as a strategic hedge.

While the company’s Q3 revenue rose 7.8% year-on-year to $4.64 billion, its stock has dipped 7.4% in 2025, reflecting market caution. Still, MediaTek’s strong partnerships and early momentum in AI infrastructure position it as a serious challenger in the evolving global AI chip arena.