MediaTek reported impressive January revenue of NT$51.144 billion (approx. US$1.56 billion), marking a 22.7% increase from the previous month and a 14.94% rise year-over-year. This performance brings the company's sales back above NT$50 billion, a milestone not often achieved, aligning with its optimistic forecasts for the first quarter of 2025.
The company attributes its strong financial performance to two main factors: clients stockpiling inventory to prepare for possible tariffs and Chinese government subsidies for electronics encouraging smartphone brands to boost orders during the off-peak season.
As a result, MediaTek expects its performance in the first quarter of 2025 to surpass the previous quarter's results, experiencing unusually strong demand for this time of year. This trend is likely to extend across Taiwan's IC design industry.
China's subsidy policies are crucial for boosting MediaTek's mobile business, potentially increasing its market share in flagship smartphones and surpassing previous sales volumes. CEO Rick Tsai noted that these subsidies are expected to significantly raise consumer interest in buying flagship smartphones.
The impending threat of tariffs has prompted early stockpiling of chips used in smart devices like TVs, networking equipment, Chromebooks, and tablets, leading to a surge in orders. This shift in product mix, driven by specification upgrades, is expected to positively impact the company's operations in the first quarter.
MediaTek is exercising caution as the current off-season demand deviates from usual trends due to unique conditions. There's uncertainty about how long this demand will last, when inventories will decrease, and business projections for 2025. The company expects to have a clearer understanding of market trends by the second quarter and will provide a more accurate yearly forecast then.