MediaTek Faces Major Impact from Memory Crisis Due to SoC Dependency

MediaTek, a leading smartphone chipset manufacturer, is facing significant challenges due to a memory crisis that may impact its System-on-Chip (SoC) shipments. Recent reports indicate that the company’s reliance on DRAM and NAND flash memory could be detrimental to its operations.

Current Market Position

MediaTek has recently surpassed competitors such as Qualcomm, Apple, and Samsung in smartphone chipset shipments. This achievement highlights the company’s strong market presence, especially as it moves toward launching its new Dimensity 9600 chipset later this year. This model leverages TSMC’s advanced 2nm process, potentially becoming MediaTek’s most expensive silicone.

Impact of the Memory Crisis

• DRAM prices have risen by 70%.
• NAND flash prices have increased by 100%.
• MediaTek’s smartphone chipsets contributed to 53% of its quarterly revenue in Q3 2025.

Despite achieving a major milestone with the successful tape-out of the Dimensity 9600, the ongoing DRAM shortage raises concerns about MediaTek’s ability to maintain its competitive edge.

Competitor Landscape

As Chinese companies lower their chipset shipment forecasts for the upcoming year, MediaTek may face decreased demand from key clients. In contrast, Qualcomm is expected to unveil two new chipsets—the Snapdragon 8 Elite Gen 6 Pro and Snapdragon 8 Elite Gen 6—offering more choices for manufacturers.

Performance and Efficiency Concerns

• MediaTek currently employs ARM CPU and GPU designs.
• Custom Oryon cores from competitors offer better efficiency.
• Geekbench 6 comparisons show the Dimensity 9500 lagging behind its rivals.

While the Dimensity 9500 is priced lower than Qualcomm’s offerings, the ongoing semiconductor shortage is likely to impact smartphone shipments in 2026. With limited flagship chipsets in development, diversifying product options will be crucial for MediaTek’s growth strategy.

Future Outlook

MediaTek was previously considered Apple’s primary supplier for 5G modems for smartwatches. However, there is no definitive timeline for when MediaTek will introduce its in-house solution. As the company navigates the current memory crisis, its strategies will play a pivotal role in sustaining its market leadership.