From Optical Drives to AI Data Centers
MediaTek CEO Rick Tsai attended the opening of "Taiwan Week" today (3rd) and delivered a speech titled "Technology Trends and the Path of Corporate Growth," reviewing MediaTek's development since its founding in 1997 and listing in 2001. The company has moved from the PC era and the mobile communications era into the AI era, starting out with consumer electronics chips for optical drives and TVs, then achieving rapid growth on the smartphone boom, and starting diversification in 2023 into automotive and AI data center businesses.
Tsai noted that since the debut of ChatGPT, global AI computing demand has doubled every 4 to 5 months, with the four hyperscalers Amazon, Google, Microsoft and Meta making massive capital expenditures, setting off a Giant wave driving industry transformation. The semiconductor industry stands at the core of the wave, and MediaTek has built a solid foundation in computing, automotive and data centers, benefiting from explosive growth in global AI computing demand, with revenue this year expected to top US$21 billion, setting a new record high.
ECB Offering Backed by NVIDIA and Alphabet
On capital strategy, Tsai said MediaTek recently completed a US$3.9 billion overseas convertible bond issue, of which as much as US$3.5 billion was subscribed by AI chip leader NVIDIA, with Google parent Alphabet also participating. The deal not only provides ample funding for future business expansion, but also represents a vote of confidence from the world's top AI giants in MediaTek's technology and execution.
Market Cap Tops US$200 Billion, Tsai Urges Buying Shares
Tsai said MediaTek's market capitalization was about US$2 billion at listing, and as of November 2 had exceeded US$200 billion, topping the US$200 billion mark to rank second among Taiwan-listed stocks, accounting for about 4% to 5% of Taiwan stock market capitalization. Over the past 25 years, MediaTek's total shareholder return has reached about 163x, translating to a compound annual growth rate of about 22%, with cumulative cash dividends of about US$27 billion paid to shareholders over the years, adding that he strongly encourages everyone to buy the company's shares.
Tsai concluded by stressing that MediaTek will mark its 30th anniversary next year, and will continue its diversified expansion from consumer products to mobile phones, and then to computing, automotive and AI data centers, leveraging its technology and hardware-software integration strengths to expand from Taiwan to the global stage and become a top global AI technology company, welcoming even stronger growth in the next phase.