MediaTek Inc., the Taiwan-based integrated circuit designer, has announced an expected annual revenue growth of nearly 10% for 2026, despite facing challenges in the second quarter. The company forecasts Q2 revenue to be between NT$140.2 billion (approximately USD 4.46 billion) and NT$149.2 billion (approximately USD 4.74 billion), indicating a potential decline of up to 6% compared to Q1. CEO Rick Tsai noted cautious customer demand and rising costs in the smartphone industry due to a shift towards data center development. Despite these challenges, MediaTek anticipates a recovery in its mobile chip business later in the year, coinciding with the launch of flagship smartphones powered by its advanced 2-nanometer chips. Additionally, the company's smart device platform is expected to see double-digit growth, driven by market share gains and rising prices for certain TV chips. MediaTek aims to maintain a full-year gross margin within the range of 44.5-47.5% through disciplined pricing strategies.