Core Viewpoint - MediaTek is actively entering the enterprise-level customized chip market, anticipating significant growth opportunities in data center efficiency upgrades and the increasing complexity of automotive electronic systems, with a total addressable market (TAM) exceeding $40 billion in each sector in the medium to long term [1]. Group 1: Market Opportunities - MediaTek expects the enterprise-level customized chip business to grow as major cloud service providers (CSPs) adopt customized chips to enhance data center operational efficiency [1]. - The company is focusing on expanding its research and development capabilities, particularly in advanced processes, packaging technologies, and key IP development, including next-generation high-speed transmission technology (448G SerDes) and advanced co-packaged optics (CPO) technology [1]. - MediaTek has initiated discussions with several cloud service providers regarding customized chips for data centers, leveraging its long-standing expertise in SerDes IP technology and execution efficiency [1]. Group 2: Financial Performance - In the second quarter, MediaTek reported revenue of NT$150.3 billion, a decrease of 1.9% from the previous quarter but an increase of 18.1% year-over-year [3]. - The operating profit for MediaTek was NT$28 billion, with an operating margin of 19.5%, reflecting a 2 percentage point decrease from the previous quarter but a 17 percentage point increase year-over-year [3]. - MediaTek's best-performing segment was the smart edge platform, which includes tablet chips, achieving a year-over-year revenue growth of 26% and a quarter-over-quarter growth of 7%, accounting for 43% of total revenue [3][4]. Group 3: Competitive Landscape - MediaTek's mobile chip business saw a year-over-year revenue increase of 19% but a quarter-over-quarter decrease of 3%, indicating a slowdown in growth [4]. - The company is also developing data center ASIC chips and automotive cockpit chips, which are expected to contribute to profitability starting next year [4]. - Qualcomm, while maintaining its leadership in mobile chips, is also expanding into automotive and IoT chips, with significant growth in these areas, indicating a competitive landscape for MediaTek [5].