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Increased investment in research and development costs, MediaTek became the 11th largest semiconductor in the world.

Published :11/26/2020 1:55:12 AM

Click Count:2103

ICInsights pointed out on the 24th that MediaTek will become the 11th place in the global semiconductor industry this year. The market believes that MediaTek’s R&D expenses last year was 63 billion yuan, and this year’s revenue increased by more than 68 billion yuan. 16th in the world, reaching 11th this year.

MediaTek disclosed in this year’s shareholder report that R&D expenses in 2019 reached 63 billion yuan, an annual increase of 10%, accounting for 25% of overall revenue, and an annual increase of 1 percentage point. In the past five years, it has exceeded 280 billion yuan, far exceeding Dong Zuo. Cai Mingjie's previous five-year research and development expenditure of 200 billion yuan mentioned at the shareholders meeting highlights his determination to deploy new technologies.

MediaTek’s new technologies, including 5G and enterprise-level ASICs, have performed well this year, especially this year is the first year of 5G. MediaTek has changed the past and not only entered the market in the early stages of the 5G era, but also launched products with various price ranges to attack the market and compete with each other. Competitors Qualcomm (QCOM-US) competed, and the benefits gradually fermented.


In addition, MediaTek’s enterprise-level ASICs (Special Application Chips) have also made gains. At present, they have contacted with Google, Amazon, Microsoft and other international first-line customers to enter the server field. This year, they have begun to contribute revenue and let the product line that has been cultivated for many years usher in harvest. During the period, the day before yesterday, it acquired Intel's power management chip business to lay out the high-end market. It can also be sold together with enterprise-level ASICs to provide customers with one-stop service.

MediaTek previously predicted that new research and development technologies such as 5G, AI, enterprise-level ASICs and automotive electronics will account for 15% of this year's overall revenue. It also believes that these investments can be transformed into medium and long-term growth drivers in the future.