In the Asia Supply Chain Market Cap 100 ranking, MediaTek saw its ranking retreat to twenty-one in 2022 from fourteen previously, as its sales took a hit from a flagging global economy that has dampened consumer demand and undermined smartphone sales in China, a primary mobile SoCs market for the chipmaker.
In the first half of 2022, MediaTek managed to maintain the sales momentum that carried forward from the previous year, with its monthly revenue mainly increasing at a high double-digit pace, and the cumulative annual growth rate for the six months was nearly 30%.
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However, in the year's second half, the end-market clients started undertaking a comprehensive inventory correction that slowed down order momentum, pressing its monthly revenue growth to a single digit and beginning to decline since October.
As such, MediaTek failed to achieve its goal of having its overall sales grow by 20% in 2022.
However, MediaTek remained on a growth track in 2022, a relatively remarkable performance compared to most peer IC-design houses that reported revenue declines for the year.
Having staved off the industry headwinds and maintaining its top ranking in the global handset SoC market in 2022, the company expects the share of its flagship chips, including the Dimensity 9000 and 8000 family products and other high-end chips, to continue climbing upward in 2023.
MediaTek made substantial gains in the Wi-Fi 6 and 5G CPE sectors in 2022, thanks to specs upgrades that enable it to compete effectively with rivals such as Qualcomm and Broadcom.
Optimizing related specs upgrades, the company has secured new orders and more product verifications, enabling it to remain competitive in the 5G infrastructure, wireless, and other emerging application markets this year.
However, MediaTek tends to be conservative about its business prospects for 2023, as shipments of its SoCs for entry-level smartphone models will remain sluggish.
While expecting the order pull-in momentum from the networking equipment sector to begin picking up in the first half of 2023, the company believes efforts to ramp up shipments of other chips for TV, Chromebook and IoT applications will also remain a challenge.