MediaTek is plotting along with new server processors based on the Arm architecture, in both CPU and GPU form, using TSMC's newer 3nm process node. The new Arm-based MediaTek AI chips will be launched in the second half of 2025.
In a new report from UDN, we hear that mass production is aiming for the second half of 2025, with orders expected from large cloud service providers (CSPs). MediaTek hasn't responded to the rumors, of course, but industry analysis shows that the AI server market is "rising rapidly," reports UDN, and that high-end AI models require high-performance computing (HPC) chips from major manufacturers like NVIDIA and AMD.
However, HPC consumes far too much power and doesn't require a large amount of AI inference, so in this field, there's no need for HPC chips. The mid-to-low-end AI server market is now growing, generating new demand. The low-power Arm architecture processor has become a "new target" for major CSP manufacturers.
MediaTek is reportedly building server-specific CPU and GPU chips based on the Arm architecture, and will be fabbed on TSMC's newer 3nm process node. The new Arm-based chips are expected to complete their design finalization (tape-out) in the first half of 2025, aimed at major CSP companies including Microsoft, Meta, and Google.
MediaTek has a healthy relationship with Arm and has since joined Arm's Total Design platform, using the Arm Neoverse computing subsystem (CSS) to develop cloud computing chips. The platform has attracted major IC design manufacturers like Novatek and Realtek.
On top of that, MediaTek's cloud computing layout has entered the AI server supply chain through Serdes computing chips, with the layouts of the processors used in said AI servers of the future has been completed, reports UDN. This creates a major opportunity for MediaTek to enter the high-end AI server market with NVIDIA chips, or the mid-to-low-end AI server market.
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MediaTek CEO Tsai Lixing specifically invited the CEO of Arm to give a keynote speech at Computex 2024 not too long ago, adding fuel to the rumors that the two major manufacturers were working together. Intel currently controls around 70% of the server processor market share with its x86-based chips, with AMD scooping up around 20%.
The Arm-based computing market of the future is slowly growing in front of our eyes, with MediaTek possible ready to capture 5% of the server processor market in the coming years.
