MediaTek Q1 revenue up 14.9% y-o-y, mobile chips drive growth

MediaTek recently reported a first-quarter revenue of NT$153.31 billion ($4.75 billion), marking a 14.9% year-on-year increase. Operating gross profit rose 5.6% year-on-year to NT$73.81 billion ($2.29 billion), while gross margin declined to 48.1%, down 4.3% from a year earlier. The company attributed the revenue growth to stronger market demand and increased adoption of AI, 5G, and Wi-Fi 7 technologies, which led to a more favorable product mix. The drop in gross margin was due to product mix changes and a high base in the first quarter of 2024 driven by a one-off gain. Vice Chairman Rick Tsai noted that mobile chips accounted for 56% of total revenue in the quarter, up 6% year-on-year. [Icsmart, in Chinese]