MediaTek reiterates high revenue, gross margin projections for 2021

Cage Chao, Taipei; Willis Ke, DIGITIMES Asia 0

MediaTek has reiterated its revenue growth projection of over 40% for 2021 with overall gross margin to stay at 44-46%, and will dole out cash dividends of up to NT$58.844 billion (US$2.109 billion) allowing shareholders to share handsome profit gains in 2020.

Company chairman MK Tsai said at a recent shareholders meeting that MediaTek will see its revenues fully resume growth momentum in the third quarter although its June sales might be dented 3-5% by its testing partner King Yuan Electronics temporarily reducing its production capacity following COVID infections among its migrant workers.

Company CEO Rick Tsai also noted that MediaTek's 2021 revenues will have a chance to surge over 40% from the 2020 level of over US$10 billion, reasoning that highly competitive product portfolios and solid fundamentals available at the company will be conducive to its structural growth.

Tsai continued that MediaTek will inject more resources into developing new technologies and product lines, shortening time to market for products and improving client structures.

After recording a capex of US$3 billion for 2020, MediaTek is estimated to funnel roughly the same amount into R&D on diverse fields including AI chips, post-5G solutions, Wi-Fi 7 and Arm-architecture computing chips to better generate the next wave of growth momentum, according to industry sources.

MediaTek saw its revenues soar 30.8% on year to a record high of NT$322.15 billion (US$11.5 billion) in 2020, ranking as the world's eighth largest semiconductor firm, up five notches from 2019, the sources said.