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MediaTek and Alchip revenue drops in February amid AI ASIC product transitions
Wednesday, March 11, 2026 at 04:11 AM
MediaTek and Alchip reported a significant decline in February revenue due to off-season effects and a transition period for AI ASIC projects. MediaTek's revenue fell 15.6% year-on-year, while Alchip saw a 77% drop as old mass production projects tapered off. However, analysts expect a recovery starting in Q2 2024 as new AI ASIC mass production begins and inventory builds for the peak season.
Context
The recent revenue contraction for MediaTek and Alchip underscores a volatile transition phase in the AI and mobile semiconductor sectors. MediaTek reported a 17.08% month-on-month revenue drop in February, pressured by a seasonal downturn in the smartphone market and uneven demand for 5G SoCs. Meanwhile, Alchip experienced a sharper 42.25% monthly decline and a 77.08% year-on-year drop, largely attributed to the lifecycle shift from 7nm to 5nm and 2nm AI ASIC products.
This slump is viewed as a temporary "bottoming out" period. Alchip expects a recovery starting in the second quarter as production schedules for next-generation AI accelerators ramp up. Industry analysts anticipate a significant rebound by 2026, when large-scale mass production of newer AI ASICs and high-performance computing platforms reaches maturity. For investors, these figures highlight the extreme cyclicality of custom silicon projects and the critical timing of product generation crossovers in the AI supply chain.
Sources (9)
Alchip Technologies, Limited 2024 Annual Report[PDF] MEDIATEK INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT ACCOUNTANTS FOR THE YEARS ENDE
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