TAIPEI (Taiwan News) — Fabless Taiwanese chipmaker MediaTek posted NT$118.14 billion (US$3.94 billion) in net profit in 2022, the company said on an earnings call on Friday (Feb. 4).

The figure was a 6% increase compared to 2021, according to the company. MediaTek also saw consolidated sales of NT$548.80 billion for 2022, representing an 11.2% year-on-year increase.

Gross margin, which equals net sales minus cost of goods sold, last year increased 49.4%, up 2.5% year-over-year. Earnings per share for 2022 were NT$74.59, compared to NT$70.56 in 2021.

Meanwhile, net income for the fourth quarter of 2022 was NT$18.49 billion, representing a 40.3% decrease from the previous quarter. Fourth quarter consolidated sales came in at NT$108.19 billion, a 23.9% drop compared to 3Q22.

MediaTek CEO Rick Tsai (蔡力行) told investors that the company had record revenue and earnings last year and noted that mobile, smart edge, and power ICs all grew for the fourth year in a row. Looking ahead, Tsai noted that due to China’s recent reopening and the “relatively stable global economy,” MediaTek expects business to start recovering in the second quarter of this year.

Tsai said first quarter revenue is forecasted to be in the range of NT$93 to NT$101.7 billion, down 6-14% sequentially, and down 29-35% year-on-year.