MediaTek would be moving its priority from mobile chips to AI-focused ASICs

Rumors coming directly from Taiwan indicate that MediaTek is making a readjustment in its strategy for 2026. The company would be moving resources from its mobile processor creation segment, the well-known Dimensity, to the development and production area of ​​ASICs, to take advantage of the AI ​​hype.

MediaTek already has an important partnership with Google, participating in the manufacturing process of the company’s famous Ironwood TPUs. Recent reports indicate that the ASIC market is mostly dominated by the search giant, which benefits its partner enough for MediaTek to rethink its priorities.

Rumors also indicate that the Taiwanese company has plans to sign Meta as another major client for ASICs, which corroborates the possibility of the company intensifying its efforts in the segment.

While it never got ahead of Qualcomm in the competitive Android processor market, MediaTek hopes to stand out in ASICs with its proprietary SerDes (serializer/deserializer) technology. The feature helps to speed up communication between processor and memory in components of this type, which can be a good attraction for products based on GPUs in AI processing.

The owner of Dimensity would be seeing the ASIC market as a “blue ocean market”, which refers to a segment in which there is a lot of demand and very little or no competition. Certainly the opposite of the current situation for mobile devices.

In this way, MediaTek expects to earn US$1 billion by helping to produce ASICs for AI throughout 2026, according to WCCFTech. The projection goes to “many billions” from 2027 onwards, which certainly takes into account gaining more giant clients besides Google by then.

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With numbers like that it makes sense to reduce the priority on cell phones, but the result for end customers is even fewer more affordable options on the market.