MediaTek set to bounce back in Q2 with surge in TV and smart speaker orders

According to a report from the "Commercial Times", MediaTek's order momentum is starting to heat up. Influenced by the urgent orders from the TV market and the successful destocking of Chinese mainland smartphones, its Q2 operations are expected to exceed 100 billion New Taiwan dollars (about 22.6 billion yuan).

MediaTek's operations have been affected by inventory adjustments in the consumer electronics market in recent quarters, but now there is news of a turnaround. The supply chain has reported that MediaTek has successfully won urgent orders from TV customers and Amazon smart speakers in Q2, and smartphone customer orders are expected to pick up in the same quarter. Analysts estimate that MediaTek's Q2 revenue may challenge double-digit quarterly growth, and the first half of the year will see steady growth.

Regarding TV chips, the supply chain has indicated that since Q1, MediaTek has increased its investment in TV chip production at wafer foundries such as TSMC, UMC, and LSC. The related packaging and testing factories have also been notified to increase their capacity, and it is expected that this order momentum will continue to grow throughout the year, becoming the only product line expected to achieve upward growth for the whole year.

It is understood that since Q4 2022, urgent orders from the TV market have gradually emerged, indicating that market inventory has returned to a healthy level. Since the first quarter of this year, the trend of TV market replenishment has become more established, becoming the main reason why MediaTek holds an optimistic view of the TV market this year.

In terms of the consumer electronics market, although overall demand is sluggish, there have been reports that Amazon has started to release urgent orders, and MediaTek is a supplier of smart speaker chips to Amazon. Although Q2 order momentum has not yet significantly picked up, there is a chance to win more urgent orders in the future.

In addition, the supply chain has pointed out that the inventory of Chinese mainland smartphones is gradually improving, and MediaTek's order momentum is expected to steadily recover from Q2 and continue into the second half of the year.