Taipei [Taiwan], May 4 (ANI): MediaTek Inc. has announced that it expects its annual revenue to grow by nearly 10 per cent this year, despite a projected stagnation or decline in the second quarter. The Taiwan-based integrated circuit designer cited cautious market demand as a primary factor for the near-term outlook, according to a report by Focus Taiwan.

For the second quarter of 2026, the company estimated revenue to fall between NT$140.2 billion (approx. USD 4.46 billion) and NT$149.2 billion (approx. USD 4.74 billion). These figures represent a range from flat growth to a 6 per cent decline compared to the first quarter. On a year-over-year basis, the forecast suggests a potential drop of between 1 and 7 per cent.

As per the report, MediaTek CEO Rick Tsai said customer demand remains cautious in the near term, while a shift in resources toward data center development has raised costs in the smartphone industry, leading to increased product pricing.

'Gross margin in the first quarter rose 0.2 percentage points from the fourth quarter of 2025 to 46.3 percent, while net profit attributable to the parent company increased 5.36 percent to NT$24.15 billion, with earnings per share of NT$15.17, supported by a more favorable product mix,' the report said.

Global smartphone shipments are expected to decline by about 15 per cent this year, Tsai added. However, the report also mentioned that MediaTek said it expects a recovery in its mobile chip business in the second half of the year as flagship smartphones powered by the company's 2-nanometer chips are set to launch late in the third quarter.

Meanwhile, the company's smart device platform, which spans connectivity, computing and automotive applications, is expected to achieve double-digit growth this year, supported by market share gains and rising DRAM prices for some TV chips, Tsai said. The forecast excludes contributions from application-specific integrated circuits (ASICs) for data centers.

Revenue from power management ICs is expected to remain largely flat in the second quarter. Despite near-term headwinds, Tsai said the company aims to maintain full-year gross margin within the second-quarter guidance range of 44.5-47.5 percent through disciplined pricing strategies. (ANI)