MediaTek reports 44% surge in monthly sales driven by AI chips

MediaTek just posted the kind of revenue growth that makes investor presentations write themselves. The Taiwanese semiconductor company reported consolidated net sales of NT$64.2 billion, roughly $2 billion, for August 2026. That’s a 44% jump compared to the same month last year. Google’s custom silicon bet is paying MediaTek’s bills The revenue surge traces back to MediaTek’s deepening relationship with one particular customer: Alphabet’s Google. The company has been developing custom AI accelerators, known as application-specific integrated circuits (ASICs), tailored specifically for Google’s data center needs. MediaTek’s first Google-linked AI ASIC is scheduled for mass production in the fourth quarter of 2026. The company is targeting approximately $2 billion in AI-related revenue for the full year. The company has its sights set on capturing 10-15% or more of the projected $80 billion AI accelerator market by 2027. A second-generation ASIC is already in the pipeline, with mass production eyed for late 2027. Nvidia’s $3.5 billion vote of confidence Nvidia invested up to $3.5 billion in MediaTek through a convertible bond sale. The two companies are also collaborating on several...