MediaTek Dimensity Chip Revenue Soars 100% in 2024

On February 7, 2025, MediaTek, a leading semiconductor company, held its earnings conference for the fourth quarter and full year of 2024, reporting results that exceeded expectations. The company's Dimensity flagship chips saw a significant revenue increase, doubling to $2 billion. Looking ahead, MediaTek anticipates a 10% sequential revenue growth in the first quarter, potentially marking its best performance in ten quarters. Additionally, driven by AI demand, MediaTek's ASIC business is projected to surpass $1 billion in revenue by 2026.

In the fourth quarter of 2024, MediaTek reported consolidated revenue of NT$138.043 billion, a 4.7% increase from the previous quarter and a 6.5% year-over-year growth. Net profit attributable to the parent company was NT$23.789 billion, a 6.1% decrease from the previous quarter and a 7.3% decline year-over-year. Earnings per share stood at NT$14.95.

For the full year of 2024, MediaTek's consolidated revenue reached NT$530.586 billion, a 22.4% increase from the previous year. Net profit attributable to the parent company was NT$106.387 billion, a 38.2% year-over-year growth. Earnings per share were NT$66.92, the third-highest in the company's history. The annual gross margin was 49.6%, an increase of 1.8 percentage points compared to the previous year. In U.S. dollar terms, revenue grew by 19% year-over-year, surpassing previous expectations.

MediaTek CEO Rick Tsai attributed the fourth-quarter revenue growth to the strong sales of flagship smartphones equipped with the Dimensity 9400 chip, such as the vivo X200 series and the OPPO Find X8 series. The substantial revenue increase from the Dimensity flagship chips, including the Dimensity 9300 and 9400, contributed significantly to the overall growth. Tsai noted that the revenue from Dimensity flagship chips more than doubled, exceeding the previously expected 70% growth, and contributed $2 billion in revenue. Additionally, the combined revenue from wired and wireless communication services from global operators achieved a 30% year-over-year growth last year.

Looking ahead to the first quarter of 2025, MediaTek forecasts revenue between NT$140.8 billion and NT$151.8 billion, a 2% to 10% sequential increase, with a year-over-year growth of 6% to 14%. The gross margin is estimated to be 47% plus or minus 1.5 percentage points.

Regarding the full year of 2025, Tsai anticipates that global smartphone shipments will grow at a rate comparable to 2024, with the 5G penetration rate increasing from 65% to between 67% and 69%.