MediaTek Records High Revenue of over 40% for 2021

Despite General Recession, MediaTek Records High Revenue of over 40% for 2021

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MediaTek is the world’s 4th largest global fabless semiconductor company that powers more than 2 billion devices a year. MediaTek has been successful in reiterating its revenue growth projection of over 40% for 2021 with overall gross margin to stay at 44-46%. They are expected to roll out cash dividends of up to NT$58.844 billion (US$2.109 billion) allowing shareholders to share handsome profit gains.

  • Dividends of up to NT$58.844 billion (US$2.109 billion
  • NT$322.1 billion, a 30.8% year-over-year growth
  • Selected as the test beds for WiFi 6E 
  • Started the investment in next generation WiFi 7 to prepare for future technology migration

2020 was a challenging year for the global semiconductor industry. In the first half of 2020, the Covid-19 pandemic led to global macroeconomic uncertainties. In the second half of the year, the global semiconductor supply chain has faced supply constraints as the demand for electronic products recovered. With the joint efforts from all MediaTek employees around the world, the company has reached new milestones in business expansion and financial performance.MediaTek has fully demonstrated the technology leadership. Its 5G and WiFi 6 products have acquired good market shares at the early stage of the product cycle. All financial indicators exhibited strong year-over-year growth albeit NTD appreciation. Our 2020 consolidated revenue reached a record high at NT$322.1 billion, a 30.8% year-over-year growth. 

MediaTek is now the 4th largest IC design company and the 8th largest semiconductor company globally, according to market research firms – Topology Research Institute and Gartner Research. In terms of profitability performance, MediaTek’s consolidated gross margin increased for the 3rd consecutive year and reached 43.9%, operating income almost doubled compared with the previous year, operating margin increased 4.2 percentage points to13.4%, EPS was NT$26.01, increased 77% year-over-year.

The solid performances of MediaTek are the results of long-term key technology investments and strong execution. The diverse and highly competitive technologies of MediaTek in wireless communication, analog, AI, multimedia and computing were widely applied in smartphones, smart TV, router, laptop, Chromebook, smart speakers, on-line streaming devices, game consoles, and various IoT devices. In 2020, MediaTek enabled 2 billion devices in the global market, enriching the daily life of global consumers and demonstrating the global competitive advantages from the cross-platform strength which solidified the foundation for the future.

On market expansion, MediaTek continued to launch various products into new areas. In2020, MediaTek launched a series of Dimensity 5G SoCs and had successful design-ins with our high-end Dimensity 1000 chipsets in several 5G smartphones. We closely cooperated with global operators and customers. Major Android smartphone brands have adopted Dimensitychipsets around the world and launched 5G smartphones in markets such as Mainland China,the U.S., and Europe. Furthermore, we have been collaborating with Intel and international operators in on our new 5G thin modem to expand 5G technology to laptop, customer premises equipment and other applications. It is expected to start mass production in 2021. In addition, demand for Wi-Fi chips is on the rise due to technology upgrade, global remote working and distant learning trend. MediaTek’s Wi-Fi 6 solutions have cross platform designsin high-end smartphones, high-end routers, GPONs and high-end TVs. It also entered new application territories by being adopted by several global laptop and Chromebook brands.MediaTek was selected as the test beds for WiFi 6E and had started the investment in next generation WiFi 7 to prepare for future technology migration. 

MediaTek’s core businesses include Mobile, Home, and Automotive. We ensure our chipsets share core technologies across these platforms – so every market segment benefits from a single piece of our intellectual property. MediaTek is known for advances in multimedia, AI and expertise delivering the most power possible – when and where needed. Plus, our chipsets are optimized to run cool and super power-efficient to extend battery life. Always a perfect balance of high performance, power efficiency, and connectivity.

Looking forward, MediaTek will carry on the investments in key technologies as the company believes wireless communication, AI, and ARM-based computing will continue to thrive. Mediatek believes the synergy from our strong product portfolio and diverse platforms will enable our unique competitive advantages in the expansion of various markets. MediaTek will uphold the strong execution as always, continue to create product value, recruit global talents and have deep collaboration with global semiconductor supply chain and customers in all products to grow with our customers and eventually to enhance shareholder value. 

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