MediaTek has secured a second customer for its custom AI chips, expanding its AI ASIC production pipeline with volume manufacturing targeted for 2028. The chip designer confirmed the deal during its October 30, 2026 earnings call, alongside a higher 2027 ASIC revenue target of approximately $16 billion .
Key takeaways
MediaTek says its second custom AI chip customer is not Chinese.
Initial accelerator shipments started in September 2026 at small volumes.
The company forecasts $2.5 billion in fourth-quarter 2026 data center revenue.
More complex second-generation chips are scheduled for mass production by the first quarter of 2028.
MediaTek’s AI ASIC production expands to a second customer
MediaTek is already co-designing chips with its second customer, with volume production planned for 2028 . The company confirmed that the buyer is not a Chinese firm, countering earlier speculation that ByteDance was behind the deal.
The first customer’s chip has already reached the shipment stage. MediaTek started delivering its first AI accelerator ASIC in limited quantities in September 2026 , and CEO Rick Tsai described demand for the product as strong.
The two customer programs are therefore at different stages: initial deliveries have begun for the first, while co-design work continues for the second.
Second-generation chips target better power efficiency
MediaTek’s second-generation ASICs use advanced multi-die packaging , and several dies have completed tape-out. That means their designs have been finalized and sent for manufacturing.
Mass production of the more complex versions is set to begin by the first quarter of 2028 , with MediaTek projecting that its second-generation chips will offer performance-per-watt gains several times greater than the first generation, while also reducing total cost of ownership for customers.
A $16 billion revenue target and a 20% market estimate
MediaTek raised its ASIC revenue target for 2027 to approximately $16 billion. The company estimates that revenue level could represent around 20% of the AI accelerator market.
Its nearer-term forecast calls for $2.5 billion in data center revenue during the fourth quarter of 2026. That projection precedes the planned 2028 production start for the second customer’s chips.
These projections came after the company posted double-digit increases in both revenue and profit during the third quarter of 2026. MediaTek reported consolidated revenue of NT$168.06 billion , an increase of 10.4% from the preceding quarter and 18.3% from a year earlier. Gross margin remained steady at 46.3%.
Customer diversification and the gap between targets and shipments
A second customer broadens MediaTek’s custom-chip customer base and reduces revenue concentration. But the $16 billion figure remains a target for 2027, not revenue already booked.
The production schedule also separates the company’s financial ambitions from the delivery milestones. MediaTek’s AI ASIC production for the first customer has begun at small volumes; the second customer’s volume manufacturing is targeted for 2028.
The nearer-term financial checkpoint is the fourth quarter of 2026, for which MediaTek projects data center revenue of $2.5 billion.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
