MediaTek Invests in Chip Design, Reports Strong Q3 Growth

MediaTek reported robust financial results for the third quarter of 2026, alongside significant investments in its core technology and future growth, signaling a strategic push to bolster its chip design capabilities.

The company’s consolidated revenue for Q3 reached NT$168.058 billion, a notable 18.3% increase compared to the same period last year and a 10.4% increase sequentially. This growth is attributed to new smart device platform projects entering mass production, as well as higher DRAM prices impacting TV SoC products. The consolidated gross margin for the quarter stood at 46.3%, remaining stable compared to the previous quarter but slightly lower than the 46.5% recorded in Q3 2025. Operating income reached NT$27.12 billion, up 22.2% year-over-year, while net income totaled NT$28.199 billion, a 10.8% increase, resulting in earnings per share of NT$17.50.

Looking ahead to Q4 2026, MediaTek forecasts consolidated revenue to be between NT$210.1 billion and NT$221.8 billion, with a gross margin of 45% ± 1.5% and an operating expense ratio of 26% ± 2%. Concurrent with the positive financial outlook, the company’s board approved a NT$3.4 billion capital expenditure plan to expand its research and development equipment, reflecting a commitment to innovation. Furthermore, MediaTek secured non-exclusive licenses and software usage rights from Arm Limited, Synopsys International Limited, and Tenstorrent USA, Inc. for a total of NT$2.327 billion (approximately US$73.02 million).

In a separate transaction, a subsidiary, Hui Fa International (Hong Kong) Limited, received board approval to dispose of up to 3,000,000 shares of Shenzhen Huiding Technology Co., Ltd. over the period of October 30, 2026 to April 30, 2027, citing company funds planning as the primary rationale. The actual sale details will be disclosed following completion. These moves demonstrate a proactive approach to capital management alongside ongoing investment in key technologies.

MediaTek’s Q3 2026 performance demonstrates a continuing upward trend in both revenue and profitability, with a strategic focus on R&D investment and intellectual property acquisition to maintain competitiveness in the dynamic semiconductor landscape.