MediaTek: $INTC Packaging Yield Issue Identified, Rapid Improvement Expected Once Resolved MediaTek reaffirmed its Q1 2028 mass-production target for its second-generation data-center AI ASIC, which uses Intel’s EMIB-T packaging. CEO Rick Tsai said the team has identified key packaging yield issues and is working with Intel and substrate suppliers to implement fixes. He expects yields to improve rapidly once those fixes are in place. This is an encouraging sign for Intel: MediaTek continues to commit engineering resources to the EMIB-T program while maintaining its production schedule. The next milestone is demonstrating that the improvements hold across production lots as volumes increase. A successful ramp would help MediaTek meet customer demand and give Intel a concrete example of EMIB-T delivering at scale, strengthening its case with other potential AI-chip customers. H/T:@rainyang721

𝗠𝗲𝗱𝗶𝗮𝗧𝗲𝗸 𝗤𝟯’𝟮𝟲: 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗚𝗿𝗲𝘄 𝟭𝟭% 𝗬𝗼𝗬, 𝗘𝘅𝗰𝗲𝗲𝗱𝗲𝗱 𝗛𝗶𝗴𝗵 𝗘𝗻𝗱 𝗼𝗳 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲; 𝗦𝗺𝗮𝗿𝘁 𝗘𝗱𝗴𝗲 𝗢𝗳𝗳𝘀𝗲𝘁 𝗠𝗼𝗯𝗶𝗹𝗲 𝗣𝗵𝗼𝗻𝗲 𝗗𝗲𝗰𝗹𝗶𝗻𝗲 @MediaTek'𝗌 𝖰𝟥 𝟤𝟢𝟤𝟨 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝖾𝗑𝖼𝖾𝖾𝖽𝖾𝖽 𝗍𝗁𝖾 𝗁𝗂𝗀𝗁 𝖾𝗇𝖽 𝗈𝖿 𝗂𝗍𝗌 𝗀𝗎𝗂𝖽𝖺𝗇𝖼𝖾, 𝗋𝖾𝖺𝖼𝗁𝗂𝗇𝗀 𝖴𝖲$𝟧.𝟥 𝖻𝗂𝗅𝗅𝗂𝗈𝗇, 𝗎𝗉 𝟣𝟣% 𝖸𝗈𝖸. 𝖬𝗈𝖻𝗂𝗅𝖾 𝖯𝗁𝗈𝗇𝖾 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝖽𝖾𝖼𝗅𝗂𝗇𝖾𝖽 𝟤𝟥% 𝖸𝗈𝖸, 𝖺𝗅𝗍𝗁𝗈𝗎𝗀𝗁 𝗍𝗁𝗂𝗌 𝗐𝖺𝗌 𝗉𝖺𝗋𝗍𝗅𝗒 𝗈𝖿𝖿𝗌𝖾𝗍 𝖻𝗒 𝗀𝗋𝗈𝗐𝗍𝗁 𝗂𝗇 𝗍𝗁𝖾 𝖲𝗆𝖺𝗋𝗍 𝖤𝖽𝗀𝖾 𝗌𝖾𝗀𝗆𝖾𝗇𝗍. 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 • 𝖪𝖾𝗒 𝗀𝗋𝗈𝗐𝗍𝗁 𝖽𝗋𝗂𝗏𝖾𝗋𝗌 𝖽𝗎𝗋𝗂𝗇𝗀 𝗍𝗁𝖾 𝗊𝗎𝖺𝗋𝗍𝖾𝗋 𝗂𝗇𝖼𝗅𝗎𝖽𝖾𝖽 𝖼𝗈𝗇𝗍𝗂𝗇𝗎𝖾𝖽 𝗌𝗍𝗋𝖾𝗇𝗀𝗍𝗁 𝗂𝗇 𝖲𝗆𝖺𝗋𝗍 𝖤𝖽𝗀𝖾 𝗉𝗅𝖺𝗍𝖿𝗈𝗋𝗆𝗌 𝖺𝗇𝖽 𝗍𝗁𝖾 𝗋𝖺𝗆𝗉-𝗎𝗉 𝗈𝖿 𝖠𝖲𝖨𝖢 𝗉𝗋𝗈𝖽𝗎𝖼𝗍𝗂𝗈𝗇, 𝗐𝗁𝗂𝖼𝗁 𝗉𝖺𝗋𝗍𝗅𝗒 𝗈𝖿𝖿𝗌𝖾𝗍 𝗐𝖾𝖺𝗄𝗇𝖾𝗌𝗌 𝗂𝗇 𝖬𝗈𝖻𝗂𝗅𝖾 𝖯𝗁𝗈𝗇𝖾 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝖺𝗆𝗂𝖽 𝗋𝗂𝗌𝗂𝗇𝗀 𝗆𝖾𝗆𝗈𝗋𝗒 𝗉𝗋𝗂𝖼𝖾𝗌 𝖺𝗇𝖽 𝗌𝗈𝖿𝗍𝖾𝗋 𝖽𝖾𝗆𝖺𝗇𝖽. • 𝖲𝗆𝖺𝗋𝗍 𝖤𝖽𝗀𝖾 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝗀𝗋𝖾𝗐 𝟧𝟥% 𝖸𝗈𝖸, 𝖽𝗋𝗂𝗏𝖾𝗇 𝖻𝗒 𝗏𝗈𝗅𝗎𝗆𝖾 𝗉𝗋𝗈𝖽𝗎𝖼𝗍𝗂𝗈𝗇 𝖺𝖼𝗋𝗈𝗌𝗌 𝟧𝖦 𝗆𝗈𝖽𝖾𝗆𝗌, 𝖠𝖨 𝖯𝖢𝗌, 𝗍𝖺𝖻𝗅𝖾𝗍𝗌 𝖺𝗇𝖽 𝖺𝗎𝗍𝗈𝗆𝗈𝗍𝗂𝗏𝖾, 𝖺𝗅𝗈𝗇𝗀𝗌𝗂𝖽𝖾 𝗁𝗂𝗀𝗁𝖾𝗋 𝖳𝖵 𝖲𝗈𝖢 𝗋𝖾𝗏𝖾𝗇𝗎𝖾. • 𝖬𝗈𝖻𝗂𝗅𝖾 𝖯𝗁𝗈𝗇𝖾 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝖽𝖾𝖼𝗅𝗂𝗇𝖾𝖽 𝟤𝟥% 𝖸𝗈𝖸 𝗂𝗇 𝖰𝟥, 𝗂𝗆𝗉𝖺𝖼𝗍𝖾𝖽 𝖻𝗒 𝗆𝖾𝗆𝗈𝗋𝗒 𝗌𝗎𝗉𝗉𝗅𝗒 𝖼𝗈𝗇𝗌𝗍𝗋𝖺𝗂𝗇𝗍𝗌, 𝗁𝗂𝗀𝗁𝖾𝗋 𝖽𝖾𝗏𝗂𝖼𝖾 𝖼𝗈𝗌𝗍𝗌 𝖺𝗇𝖽 𝗌𝗈𝖿𝗍𝖾𝗋 𝖾𝗇𝖽-𝗆𝖺𝗋𝗄𝖾𝗍 𝖽𝖾𝗆𝖺𝗇𝖽, 𝗉𝖺𝗋𝗍𝗂𝖼𝗎𝗅𝖺𝗋𝗅𝗒 𝗂𝗇 𝗍𝗁𝖾 𝗆𝗂𝖽- 𝖺𝗇𝖽 𝗅𝗈𝗐-𝖾𝗇𝖽 𝗌𝖾𝗀𝗆𝖾𝗇𝗍𝗌. • 𝖯𝗈𝗐𝖾𝗋 𝖨𝖢 𝖼𝗈𝗇𝗍𝗋𝗂𝖻𝗎𝗍𝖾𝖽 𝟧% 𝗈𝖿 𝗍𝗈𝗍𝖺𝗅 𝗋𝖾𝗏𝖾𝗇𝗎𝖾, 𝗀𝗋𝗈𝗐𝗂𝗇𝗀 𝟣𝟪% 𝖸𝗈𝖸, 𝖽𝗋𝗂𝗏𝖾𝗇 𝖻𝗒 𝗆𝖺𝗋𝗄𝖾𝗍-𝗌𝗁𝖺𝗋𝖾 𝗀𝖺𝗂𝗇𝗌 𝗂𝗇 𝖽𝖺𝗍𝖺 𝖼𝖾𝗇𝗍𝗋𝖾-𝗋𝖾𝗅𝖺𝗍𝖾𝖽 𝖻𝗎𝗌𝗂𝗇𝖾𝗌𝗌. • 𝖠𝖨 𝖠𝖲𝖨𝖢 𝗌𝗁𝗂𝗉𝗆𝖾𝗇𝗍𝗌 𝗌𝗍𝖺𝗋𝗍𝖾𝖽 𝗂𝗇 𝖲𝖾𝗉𝗍𝖾𝗆𝖻𝖾𝗋, 𝗐𝗂𝗍𝗁 𝗌𝗍𝗋𝗈𝗇𝗀 𝖼𝗎𝗌𝗍𝗈𝗆𝖾𝗋 𝖽𝖾𝗆𝖺𝗇𝖽 𝗌𝗎𝗉𝗉𝗈𝗋𝗍𝗂𝗇𝗀 𝖾𝗑𝗉𝖾𝖼𝗍𝖾𝖽 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝗈𝖿 𝖴𝖲$𝟤.𝟧 𝖻𝗂𝗅𝗅𝗂𝗈𝗇 𝗂𝗇 𝖰𝟦 𝟤𝟢𝟤𝟨.   • 𝖰𝟦 𝟤𝟢𝟤𝟨 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝗂𝗌 𝖾𝗑𝗉𝖾𝖼𝗍𝖾𝖽 𝗍𝗈 𝖻𝖾 𝗂𝗇 𝗍𝗁𝖾 𝗋𝖺𝗇𝗀𝖾 𝗈𝖿 𝖴𝖲$𝟨.𝟨–𝟨.𝟫 𝖻𝗂𝗅𝗅𝗂𝗈𝗇, 𝗋𝖾𝗉𝗋𝖾𝗌𝖾𝗇𝗍𝗂𝗇𝗀 𝟥𝟩–𝟦𝟥% 𝖸𝗈𝖸 𝗀𝗋𝗈𝗐𝗍𝗁, 𝗉𝗋𝗂𝗆𝖺𝗋𝗂𝗅𝗒 𝖽𝗋𝗂𝗏𝖾𝗇 𝖻𝗒 𝗋𝖾𝗏𝖾𝗇𝗎𝖾 𝗋𝖾𝖼𝗈𝗀𝗇𝗂𝗍𝗂𝗈𝗇 𝖿𝗋𝗈𝗆 𝗍𝗁𝖾 𝖠𝖲𝖨𝖢 𝖻𝗎𝗌𝗂𝗇𝖾𝗌𝗌 𝖺𝗇𝖽 𝖼𝗈𝗇𝗍𝗂𝗇𝗎𝖾𝖽 𝗀𝗋𝗈𝗐𝗍𝗁 𝗆𝗈𝗆𝖾𝗇𝗍𝗎𝗆 𝗂𝗇 𝗍𝗁𝖾 𝖲𝗆𝖺𝗋𝗍 𝖤𝖽𝗀𝖾 𝗌𝖾𝗀𝗆𝖾𝗇𝗍. 𝗥𝗲𝗹𝗮𝘁𝗲𝗱 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗠𝗲𝗱𝗶𝗮𝗧𝗲𝗸 𝗗𝗶𝗺𝗲𝗻𝘀𝗶𝘁𝘆 𝟵𝟲𝟬𝟬 𝗣𝗿𝗼: 𝗠𝗼𝘃𝗶𝗻𝗴 𝘁𝗼 𝟮𝗻𝗺 𝘄𝗶𝘁𝗵 𝗮 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆: 𝗠𝗲𝗱𝗶𝗮𝗧𝗲𝗸 𝘁𝗼 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗲 𝟭 𝗶𝗻 𝟰 𝗔𝗜 𝗔𝗦𝗜𝗖 𝗦𝗲𝗿𝘃𝗲𝗿 𝗖𝗼𝗺𝗽𝘂𝘁𝗲 𝗦𝗵𝗶𝗽𝗺𝗲𝗻𝘁𝘀 𝗶𝗻 𝟮𝟬𝟮𝟴: 𝗗𝗮𝘁𝗮 𝗖𝗲𝗻𝘁𝗲𝗿 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗔𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗠𝗲𝗱𝗶𝗮𝗧𝗲𝗸’𝘀 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 #MediaTek# #Earnings# #Semiconductors# #SmartEdge# #AIASIC# #ASIC# #EdgeAI# #MobileSoC#

MediaTek’s data-center custom chips are becoming a real line. Beyond the large customer widely seen as Google, it is also building opportunities with multiple other clients on data-center custom chips. It has said stronger AI models and the rise of agent systems are lifting both cloud and edge compute demand. Agent work needs planning, reasoning, execution, and self-correction, which raises the total load. That is the growth opening. On the data-center side, customer demand for custom solutions is strong. Through close work with one large US cloud provider, it has already built the first AI accelerator custom chip with leading performance. Volume production is expected this quarter. Data-center revenue this year is expected to exceed $2 billion, with faster growth in 2027. It sees the 2027 addressable market for related data-center chips at $80 billion. It has raised its share target from the prior 10% to 15% range to 15% to 20%. The second AI accelerator custom chip is also on track. Yields and reliability are meeting the development plan. Volume is still aimed at 2028. It expects share to rise as that chip ramps. It is continuing to deepen custom-chip work with multiple customers. It points to leading intellectual property, deep ecosystem partners, and a track record of execution as the reasons it can win more design slots.

MediaTek says the memory-saving features in its Dimensity 9600 Pro are designed to ease pressure from rising chip and memory costs. The company says these features let phones run larger AI models without additional RAM. According to TechNews, the chip supports mixture-of-experts models with up to 30 billion parameters, keeping roughly 3 billion in memory and loading others as needed.

MediaTek just launched two flagship phone chips at once. That is a first for it. The Dimensity 9600 Pro is built on TSMC’s 2nm process. The Dimensity 9600M uses TSMC 3nm. Phones with both are due soon. $TSM The Pro is the top chip. It uses an all-big-core design: two ultra cores at 4.55GHz and six more big cores beneath them. Single-core speed is up 17%. Multi-core is up 15%. At peak multi-core load it uses 61% less power than the last generation. On-device AI is the pitch. A second-gen low-power brain uses 40% less energy. A tenth-gen high-power brain makes 55% more tokens per watt. The chip is meant to notice and act, not just sit in an app. The 9600M is the volume flagship. Same idea, lower cost. Better camera processing and a lighter AI agent for more phones. MediaTek says its Dimensity line has been the world’s top phone chip for six years. Two chips at one event is how it tries to keep that. 2nm for the tip. 3nm for the crowd.

MEDIATEK UNVEILS ITS FIRST 2NM SMARTPHONE CHIP MediaTek launched the Dimensity 9600 Pro, its first mobile processor built on TSMC's 2-nanometer process, alongside the 3-nanometer Dimensity 9600M for the broader flagship tier, per Reuters. The first phones using both chips launch soon. The 9600 Pro's neural processing unit handles more generative-AI work on the device and processes a user's prompt 51% faster than the previous generation, the company says. The push is aimed at Qualcomm $QCOM in premium handsets, where MediaTek's market value already passed Qualcomm's earlier this year. MediaTek's first AI accelerator for a major US cloud provider enters mass production in the fourth quarter. Last month it raised $3.9B in a convertible sale in which $NVDA put in $3.5B and $GOOGL participated. August revenue rose 44% y/y.

MediaTek’s latest announcement on the deepening of its long-term partnership with Nvidia repeatedly uses the term “rack-scale.” This is the key to understanding the announcement, and it directly validates the central conclusion of my research from more than two months ago: MediaTek has upgraded the strategic positioning of its AI business from "IC / ASIC design" to "system-level design." The announcement link: The announcement also explains how MediaTek plans to put this new positioning into practice. By working with Nvidia, MediaTek can bring custom chips and XPUs into Nvidia’s mature rack-scale ecosystem, so that once chip development is complete, they can be integrated more quickly into rack-scale systems for deployment in data centers and AI factories. For MediaTek, Nvidia’s mature rack-scale systems ecosystem means it does not need to start from scratch, giving this new strategy a much clearer path to execution. For Nvidia, MediaTek’s custom silicon design capabilities and customer base can help extend Nvidia’s rack-scale ecosystem further into the custom silicon market. This also explains why “rack-scale” is the key term in the announcement: it is where the two companies need each other most. MediaTek can move from chips to systems, while Nvidia can extend its rack-scale ecosystem into the custom silicon market, creating a win-win that opens up new growth opportunities for both.

MediaTek's Rick Tsai on their biggest bottleneck: "Supply chain does present challenges. Not just HBM but go down to substrate, etc. Being in Taiwan, it's almost like the center of AI infrastructure ecosystem really helps." There is not enough substrate at all... Via @BloombergTV