MediaTek has secured a second customer for its custom AI chips, with co-design work underway and mass production targeted for 2028. The company said the customer is not Chinese, countering market speculation that ByteDance was the buyer. MediaTek began small-volume shipments of its first AI accelerator ASIC in September 2026, while CEO Rick Tsai cited strong demand. The company expects data-center revenue of $2.5 billion in the fourth quarter of 2026 and raised its 2027 ASIC revenue target to approximately $16 billion, equivalent to about 20% of the AI accelerator market by its estimate. Third-quarter revenue rose 18.3% year over year to NT$168.06 billion, while net income increased 10.8% to NT$28.2 billion. MediaTek’s advanced multi-die packaging program has taped out several dies, and more complex versions are scheduled for mass production by the first quarter of 2028. The company is seeking to reduce its reliance on smartphones through custom AI-chip agreements with major cloud providers, although the scale and timing of the revenue targets remain dependent on production and customer adoption. It also issued $3.9 billion in overseas convertible bonds in August, with Nvidia investing $3.5 billion and Alphabet participating.