MediaTek Faces Challenges Amid DRAM Shortage

MediaTek, a leading player in the smartphone chipset market, is facing significant challenges due to a shortage of DRAM and NAND flash memory. As of Q3 2025, smartphone chipsets accounted for 53% of MediaTek's revenue, making the company particularly vulnerable to rising memory prices, which have surged by 70% for DRAM and 100% for NAND flash. This situation is compounded by the anticipated launch of MediaTek's Dimensity 9600 chipset, which is expected to be its most expensive silicon yet, leveraging TSMC’s 2nm process. The company is reportedly the hardest hit among chipset manufacturers, as its revenue heavily relies on SoC shipments.

MediaTek Estimated To Be Hit The Hardest Out Of All Chipset Manufacturers Thanks To The Memory Crisis, As More Than 50% Of Its Revenue Comes From SoC ShipmentsMediaTek Estimated To Remain The Global Smartphone Chipset Shipments’ Leader In 2026, But Will Witness A Decline Like Apple & Qualcomm Due To Rising DRAM CostsGoogle Pixel’s Tensor chip said to help weather a rocky smartphone market in 2026

According to Counterpoint Research, the overall smartphone chipset market is projected to decline by approximately 7% in 2026 compared to 2025. This downturn is expected to affect lower-priced devices most severely, particularly in the sub-$150 segment. In contrast, brands that invest in in-house chip development, such as Google, Samsung, and Huawei, are better positioned to navigate these market challenges. MediaTek, while retaining a significant market share of 34% in 2026, is expected to face stiff competition from Qualcomm and Apple, both of which are benefiting from a trend towards premium devices.

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Counterpoint Research's senior analyst, Soumen Mandal, noted that despite the pressures on shipments, the smartphone SoC market is anticipated to achieve double-digit revenue growth in 2026. This growth is attributed to the ongoing premiumization trend, higher memory prices, and the rapid adoption of AI-enabled features across smartphones. Mandal stated, “Despite near-term shipment pressures, we expect the smartphone SoC market to deliver double-digit revenue growth in 2026.”

MediaTek Estimated To Remain The Global Smartphone Chipset Shipments’ Leader In 2026, But Will Witness A Decline Like Apple & Qualcomm Due To Rising DRAM Costs

Critics argue that MediaTek's reliance on ARM CPU and GPU designs, which are less efficient compared to custom cores, may hinder its competitiveness against Qualcomm and Apple. The Dimensity 9500 has demonstrated inferior performance metrics compared to its rivals, raising concerns about MediaTek's long-term strategy. Additionally, with only one flagship chipset in development, the company may struggle to maintain its market position if it does not diversify its offerings.

MediaTek Estimated To Be Hit The Hardest Out Of All Chipset Manufacturers Thanks To The Memory Crisis, As More Than 50% Of Its Revenue Comes From SoC Shipments

• “Despite near-term shipment pressures, we expect the smartphone SoC market to deliver double-digit revenue growth in 2026.” — Soumen Mandal, Senior Analyst, Counterpoint Research

MediaTek Estimated To Remain The Global Smartphone Chipset Shipments’ Leader In 2026, But Will Witness A Decline Like Apple & Qualcomm Due To Rising DRAM Costs

As MediaTek prepares for the launch of its Dimensity 9600 chipset, the company must develop strategies to mitigate the impact of the ongoing memory crisis. The success of this chipset could be pivotal in maintaining its competitive edge in a challenging market landscape. The company’s ability to adapt to rising costs and shifting consumer preferences will be crucial as it navigates the complexities of the smartphone chipset industry in 2026.

MediaTek Estimated To Be Hit The Hardest Out Of All Chipset Manufacturers Thanks To The Memory Crisis, As More Than 50% Of Its Revenue Comes From SoC Shipments