IC design house MediaTek has reported revenue of NT$95.65 billion (US$3.14 billion) for the first quarter of 2023, just slightly above the low-end target of the company's guidance given in early February.
MediaTek posted NT$42.96 billion in March revenue, jumping 41.7% from the previous month, although revenue for the first quarter fell 11.6% sequentially and nearly 33% year on year.
The outlook for mobile phone demand is still uncertain, while competition for mobile phone APs is increasing. Demand for non-mobile applications such as Wi-Fi core chips and power management ICs has also yet to recover. Thus, MediaTek is still under pressure to generate revenue and profit decreases in the second quarter, according to market sources.
Oppo, already a MediaTek customer, is reportedly gearing up for the release of its in-house developed mobile SoC. The Taiwan-based chipmaker is also facing increased rivalry from Qualcomm in the midrange segment where the US firm is promoting its Snapdragon 7 and 6 series with price drops, the sources said.
MediaTek said previously that the first quarter would be a low point for the fabless chipmaker. "We believe demand visibility will gradually improve in the next few months and our business start recovering from the second quarter of this year," said company CEO Rick Tsai during a February 3 earnings conference call.
MediaTek is scheduled to hold an earnings conference call on April 28.
Article translated by Jessie Shen
