MediaTek Shifts Focus to Automotive and AI Computing Amid Smartphone Oversupply and Economic Uncertainty

MediaTek, a major chip design company in Taiwan, is now focusing on developing chips for the automotive industry and artificial intelligence (AI) computing due to economic uncertainty. This shift comes in response to a surplus of smartphones, many of which remain unsold due to a decline in consumer electronics demand.

According to MediaTek Inc CEO Rick Tsai, the company is rapidly shifting its focus towards the automotive and computing sectors, as they expect these highly potential areas to be the primary drivers of growth over the next three to five years.

Despite lackluster demand for smartphones in the first quarter, MediaTek anticipates signs of recovery later this year. The company is optimistic and is shifting a significant portion of its resources towards the automotive and computing sectors, which the management under Rick Tsai believes will power the company's expansion at full throttle over the next three to five years.