TAIPEI (Taiwan News) — MediaTek announced Wednesday its Q1 revenue hit NT$153.3 billion (US$4.79 billion), up 11.1% quarter-over-quarter.

The company said increased demand and broader adoption of AI, 5G, and WiFi 7 technologies drove growth, per TechNews. Net income rose 23.3% to NT$29.3 billion, while the gross margin narrowed slightly to 48.1%.

Speaking at an investor conference, MediaTek CEO Rick Tsai (蔡力行) said customer demand remains stable, with no major order adjustments so far, per CNA. He added that supply chain inventory levels remain healthy and Q2 revenue is expected to stay flat compared to Q1, despite global tariff uncertainty.

In smartphones, flagship Dimensity 9400+ and 8000 series chips sales are forecast to grow in Q2, though Tsai warned that demand for mainstream and entry-level models may soften. Overall handset chip revenue is projected to be flat or down slightly compared to Q1.

Meanwhile, MediaTek’s smart device segment is set to outperform, boosted by gains in AI tablets, custom consumer chips, and automotive market share. Power management integrated circuit revenue is also expected to rise, with stronger demand from consumer electronics, vehicles, and data centers.

For Q2, MediaTek estimates revenue between NT$147.2 billion and NT$159.4 billion, with gross margins ranging from 45.5% to 48.5%. Given uncertainty in the second half of the year, the company declined to offer a full-year forecast.