MediaTek Expects Q3 Revenue to Increase by 30% Month-on-Month


The US strategy of restricting the use of American technology and products by selected Chinese companies is quite beneficial for non-American tech companies. And the most benefited seems to be the Taiwanese MediaTek. In recent years, it has been focusing only on the low-end smartphone market. But now, it has launched high-end and mid-range 5G chips and is gradually occupying the premium and mid-range smartphone market. This and other factors will help the company to get more than planned. The semiconductor company MediaTek predicts that in the third quarter of 2020, the company’s revenue will increase by as much as 30% from the previous quarter.

MediaTek low-end 5G

MediaTek predicts that in the third quarter of 2020, the company’s revenue will reach NT$82-87 billion (approximately US$2.77-27.9 billion). This is a 22% increase from the previous quarter’s NT$67.603 billion, far exceeding market expectations. The company expects shipments of all its product lines (especially the Dimensity Series 5G SoC) to increase significantly.

The company also predicts that its gross profit margin in the third quarter will be around 41.5% to 44.5%. This is roughly the same as in the second quarter.

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MediaTek Financial Report For Q2

MediaTek’s financial report for the second quarter of 2020 released at the end of July showed that the company’s revenue in the second quarter was NT$67.603 billion (about 16.1 billion yuan), a year-on-year increase of 9.8%; net profit was NT$7.31 billion (approximately US$2.3 billion), a year-on-year increase of 12.4%; gross profit margin was 43.5%, an increase of 0.4 percentage points from the previous quarter and an increase of 1.6 percentage points from the same period last year.

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In the first half of 2020, MediaTek’s revenue increased by 12.4% year-on-year to 128.46 billion Taiwan dollars (US$4.37 billion), and its net profit increased by 33.33% year-on-year to 13.114 billion Taiwan dollars (US$0.45 billion), with an average gross profit margin of 43.31%.

Industry sources said that MediaTek expects its full-year revenue to grow by at least 15% this year. This is twice the original estimate.

MediaTek is a semiconductor company that focuses on wireless communications and digital multimedia technology. The company’s chip integrated system solutions include wireless communications, high-definition digital TV, optical storage, DVD and Blu-ray and other related products.

Last month, the company launched a new 5G smartphone processor Dimensity 720. This processor is built using TSMC’s 7nm process and integrates a low-power 5G modem. It is reported that Huawei, Xiaomi, OPPO and other smartphone manufacturers will adopt this processor.

By the way, the Dimensity 720 is the fourth 5G smartphone processor launched by MediaTek. The other three are Dimensity 1000, Dimensity 800, and Dimensity 820.

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