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TAIPEI, Oct 31 (Reuters) - Taiwan's top chip design company, MediaTek (2454.TW), opens new tab, expects to earn revenue of billions of dollars from its AI accelerator ASIC chips by 2027, the chief executive said on Friday, as the company pushes further into the data centre business. Chief Executive Rick Tsai told a quarterly earnings conference call that MediaTek was on track to generate $1 billion in revenue from its cloud AI chips in 2026 after its first AI accelerator ASIC project was well executed. Sign up here. "The first project we generate multiple billions in 2027," Tsai said. "And another project we'll start delivering revenue starting 2028 and beyond." The total addressable market (TAM) for data center ASIC chip is now estimated at $50 billion and MediaTek is striving to gain market share of at least 10 to 15 percent in the next two years, Tsai added. On Monday, competitor Qualcomm (QCOM.O), opens new tab unveiled two artificial intelligence chips for data centres that will be available in 2026 and 2027. MediaTek has partnered with Nvidia (NVDA.O), opens new tab to co-design the GB10 Grace Blackwell Superchip used in Nvidia's DGX Spark, a personal AI supercomputer that went on sale this month. In September, Nvidia (NVDA.O), opens new tab said it would invest $5 billion in Intel (INTC.O), opens new tab. Asked whether Nvidia’s investment in Intel, its rival in CPUs, would have any impact on MediaTek's future cooperation with Nvidia, Tsai said he did not believe the news would affect the companies' joint efforts on the GB10. On Friday, MediaTek reported third-quarter revenue of T$142.1 billion ($4.64 billion), up 7.8% from a year earlier, while net income was down 0.5% at T$25.5 billion. MediaTek shares have fallen 7.4% this year, underperforming a rise of 22.6% in the benchmark index (.TWII), opens new tab. The stock closed flat on Friday ahead of its earnings release. The world's largest contract chipmaker, TSMC (2330.TW), opens new tab, raised its full-year revenue forecast this month on a bullish outlook for spending on AI, after posting a record profit that blew past market estimates. ($1=30.5930 Taiwan dollars) Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Clarence Fernandez Our Standards: The Thomson Reuters Trust Principles., opens new tab Ben joined Reuters as a company news reporter in Shanghai in 2003 before moving to Beijing in 2005 to cover Chinese politics and diplomacy. In 2019 Ben was appointed the Taiwan bureau chief covering everything from elections and entertainment to semiconductors.
