MediaTek Invests $90 Million In Ayar Labs To Cut Chip Power Use By 80% And Boost AI And 6G Future
mediatekSaturday, 28 February 2026 at 04:55
MediaTek is making a strategic move that could shape the future of both AI hardware and mobile chips. The company has invested $90 million in Ayar Labs through its subsidiary Digimoc Holdings Limited, securing roughly a 2.4% stake in the silicon photonics specialist.
MediaTek Is Investing Heavy in a Power-Optimized Future and in the 6G Landscape
Ayar Labs focuses on optical I/O technology that replaces traditional copper electrical connections between chips with links that use light. Instead of sending electrical signals through metal pathways, this method moves data using light channels built directly into the silicon, allowing for faster speeds and better efficiency.
The main advantage here is lower power use. Optical links can cut I/O power consumption by up to 80% compared to traditional electrical connections. That’s a big deal, especially in AI data centers where thousands of chips are constantly moving huge amounts of data. Using less power also means generating less heat, which helps systems run more efficiently and reliably.
MediaTek now joins other big names like Nvidia, Intel, and AMD as investors in Ayar Labs. With several major chipmakers backing the company, it’s clear that silicon photonics is starting to look like an important part of future chip design.
And this goes beyond data centers. MediaTek is reportedly developing I/O modules for Google’s TPUv7, and over time, optical connections could replace traditional high-speed electrical SerDes links used inside many processors. That shift could affect AI chips, edge devices, and even the mobile processors found in smartphones.
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There’s also long-term potential for 6G networks. Future wireless technology will need much higher speeds while using less power. Silicon photonics could help build the kind of infrastructure needed to make that possible.
Highlights
- MediaTek invests $90 million in Ayar Labs via subsidiary Digimoc Holdings Limited
- Acquires approximately 2.4% stake in the silicon photonics startup
- Optical I/O technology can cut power consumption by up to 80%
- Backed by Nvidia, Intel, and AMD
- Potential impact on AI data centers, edge computing, and mobile processors
- Seen as a key technology for the future 6G network infrastructure
For everyday users, this investment won’t add a new feature to your next phone right away. But it helps build the foundation for faster performance, less heat, and better battery life in the future. MediaTek is betting that using light instead of electricity to move data will play a big role in the next generation of chips.
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