MediaTek's Dimensity flagships boosted revenue by $10 billion, but 2026 will be a tough year.

Short summary

- Revenue for Q4 2025 – over $10 million, almost 60 % from mobile SoCs.

- Growth is driven by widespread adoption of Dimensity 9500/8500 chips.

- A decline in smartphone chip supplies is expected in 2026 due to rising DRAM and NAND prices, but MediaTek will still maintain leading positions relative to competitors.

- To offset losses the company is strengthening other areas: Smart Edge (18 % YoY growth), ASIC for data centers, networking solutions (5G/Wi‑Fi 7) and automotive sector (ADAS with DENSO).

- From 2026–2028 new products are planned: Dimensity 9600 (2 nm, price advantage), PC processors N1/N1X in partnership with Nvidia and possible introduction of Wi‑Fi 8 by the end of 2026.

1. Financial results for Q4 2025
- Total revenue from smartphone processor sales exceeded $10 billion.

- Mobile SoCs accounted for 59 % of the company’s total income during this period.

- The main growth driver was broader sales of flagship chips Dimensity 9500 and Dimensity 8500, as confirmed by Counterpoint Research analysts.

2. Outlook for the coming years
Metric Forecast Supply decline of smartphone chips Yes, in 2026 due to rising DRAM and NAND prices Competitiveness MediaTek will retain leading positions versus Qualcomm and other players Impact on SoC market The steepest drop is expected among manufacturers dependent on smartphone chips

3. Threats from memory price increases
- Rising DRAM/NAND costs raise component prices and reduce demand for smartphones.

- This pressure affects both MediaTek and all mobile SoC makers.

4. Strategic development directions
a) Smart Edge (smart perimeter)
- 18 % YoY growth in Q4 2025.

- Expected to offset the decline in mobile processor revenue in Q1 2026.

b) ASIC for data centers
- Forecasted revenue > $1 billion.

- High demand from hyperscalers expected by 2028.

c) Networking solutions
- Revenue from networking solutions reached $3 billion in 2025.

- 5G modems and Wi‑Fi 7 chips are in high demand.

- Wi‑Fi 8 is planned for rollout by the end of 2026.

d) Automotive sector
- Deployment of media system chips in partnership with DENSO.

- Joint development of an advanced driver assistance systems (ADAS) electronic suite.

5. New products and partnerships
Product Partner Release date Features Dimensity 9600 – 2026 First 2‑nm MediaTek chip, price advantage over Snapdragon 8 Elite Gen 6 Pro/Gen 6 PC processors N1/N1X Nvidia Second half of 2026 AI support, low power consumption, high compute performance; competition with Apple Silicon and Snapdragon

Conclusion
MediaTek demonstrates strong results in the mobile segment but faces challenges from rising memory prices. To mitigate potential losses, the company is expanding its portfolio: Smart Edge, ASIC for data centers, networking solutions, and automotive market become key growth drivers. Meanwhile development of new chips (Dimensity 9600, N1/N1X) continues to maintain competitiveness in the global SoC market.