Due to inventory corrections currently occurring at customers and channel distributors, MediaTek has marginally decreased its projection for revenue growth this year.

Compared to the 20 percent growth previously predicted, MediaTek anticipates revenue growth of 17 to 19 percent in 2022, with a gross margin of 48 to 50 percent.

With a gross margin ranging from 47.5 percent to 50.5 percent, MediaTek predicted third-quarter revenue at between NT$141.7 billion (US$4.73 billion) and NT$154.2 billion, marking an up to 9 percent sequential decline.

According to Risk Tsai, CEO of the mobile SoC specialist MediaTek, customers and channel distributors have been actively adjusting their inventory levels. This trend may continue for the next two to three quarters. According to Tsai, macro headwinds like inflationary pressure have a negative effect on consumer confidence and uncertainty in end-market demand.

Additionally, MediaTek reduced its forecast for worldwide smartphone shipments this year to 1.2-1.27 billion devices, a decrease of almost 6% from its previous projection. About half of all smartphones shipped worldwide in 2022 will be 5G devices.

According to the fabless chipmaker MediaTek, shipments of 5G smartphones are expected to increase at a CAGR of roughly 20 percent over the coming years.

In the second quarter of 2022, MediaTek reported revenue growth of 9.1% sequentially to NT$155.73 billion, with a gross margin of 49.3%. The company’s second-quarter net profit of NT$35.61 billion, or NT$22.39 per share, was up 6.6 percent from the first quarter and 29.1 percent from the same period in 2021.

* Figures have been combined.

TSE was created by DIGITIMES Asia in August 2022.

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