Broadcom Client Shifts to Intel, MediaTek Key Role
According to the latest monthly revenue disclosures from IC design companies, Taiwan’s semiconductor design sector is showing diverging performance trends in May, while artificial intelligence (AI) application-specific integrated circuit (ASIC) demand continues to shape medium- to long-term growth expectations across the industry.
MediaTek reported consolidated revenue of NT$47.434 billion in May, up 1.49% month-on-month and 4.99% year-on-year, marking a return to both monthly and annual growth. Cumulative revenue for the first five months reached NT$243.321 billion, a slight 1.59% decline compared with the same period last year. Market analysts note that beyond its flagship smartphone SoCs, Wi-Fi 7 solutions, and automotive platforms, the company’s AI ASIC development is becoming an increasingly important driver of investor attention.
Industry discussions have intensified following comments from Broadcom during its earnings call, where it indicated that a major customer is actively seeking additional suppliers. This has fueled market speculation that MediaTek could expand its involvement in customized AI accelerator programs, including potential participation in Google’s Tensor Processing Unit (TPU) ecosystem. Google TPU remains a key focus area in global AI infrastructure competition, and MediaTek has been increasingly positioning itself in high-performance computing and data center ASIC design.
Analysts further suggest that if AI ASIC projects enter mass production as expected, they could help reduce MediaTek’s reliance on cyclical smartphone demand, while improving its long-term product mix and valuation outlook.
In parallel, Intel is reportedly involved in securing large-scale TPU-related orders, with industry sources indicating that leading-edge chips are still expected to be manufactured using Taiwan Semiconductor Manufacturing Company advanced process technologies. Intel is expected to participate through advanced packaging technologies such as EMIB, while ASIC design roles may involve multiple ecosystem partners, including MediaTek.
Meanwhile, Alchip Technologies (Alchip-KY) continues to experience short-term revenue pressure during its operational adjustment phase. The company posted May consolidated revenue of NT$1.935 billion, down 33.45% year-on-year. Cumulative revenue for the first five months reached NT$8.255 billion, compared with NT$16.526 billion in the same period last year, reflecting a 50.05% decline, mainly due to the transition between major customer projects.
However, the company is expected to follow a “first-half weakness, second-half strength” trajectory. Analysts forecast that a key 3nm project for a major client is expected to begin contributing revenue from June, with mass production-related orders likely to significantly boost second-half performance. Market expectations suggest that the company’s full-year revenue structure will be heavily weighted toward the second half, potentially accounting for around 80% of annual sales.
Overall, industry analysts emphasize that AI ASIC has become a central growth engine for Taiwan’s IC design sector. As global cloud service providers continue to expand AI infrastructure investments, the ASIC supply chain is expected to gradually transition from a low base into a stronger growth cycle in the second half of the year.
