Core Insights - MediaTek's Q2 revenue reached NT$150.4 billion, marking an 18.1% year-over-year increase, driven by demand for edge AI chips and faster networking chips, while experiencing a 1.9% quarter-over-quarter decline due to unfavorable exchange rate factors [1][2][5] Financial Performance - Revenue for Q2 2025 was NT$150,369 million, down from NT$153,312 million in Q1 2025, but up from NT$127,271 million in Q2 2024 [1][5] - Gross profit was NT$73,878 million, with a gross margin of 49.1%, reflecting a 1% increase from the previous quarter [2][5] - Operating profit was NT$29,379 million, a decrease of 2.2% quarter-over-quarter but an increase of 17.7% year-over-year [1][5] - Net profit for the quarter was NT$28,064 million, down 5.0% from Q1 2025 but up 8.1% from Q2 2024, resulting in a net profit margin of 18.7% [2][5] Cost Structure - Research and development expenses totaled NT$36,923 million, accounting for 24.6% of revenue, with a year-over-year increase of 19.7% [2][3] - Selling expenses rose significantly by 45% to NT$4,944 million, increasing its share of revenue from 2.7% to 3.3% [3] Cash Flow and Working Capital - Operating cash flow improved significantly to NT$456 million, compared to NT$134 million in the previous quarter, indicating strong cash position [2] - Accounts receivable turnover days increased from 37 days in the previous quarter to 45 days, while inventory turnover days improved from 72 days to 66 days year-over-year [2] Strategic Partnerships - MediaTek is collaborating with NVIDIA to develop high-performance APU, aiming to enter the gaming laptop market, potentially disrupting AMD's dominance [4][6] - The new APU will integrate NVIDIA's latest GPU architecture and MediaTek's custom Arm architecture CPU cores, enhancing performance and energy efficiency [6]