MediaTek, despite being a major global semiconductor company is still relatively unknown to consumers. The company, while quietly becoming a force in the semiconductor sector, does not have a name that is easily remembered by consumers.
The question of “identity crises” is multifaceted. It can involve public perception, positioning on the market, and internal strategies. This discussion examines if MediaTek is going through a similar crisis, and if it is, what its implications may be.
MediaTek’s History
MediaTek, a Taiwan-based company founded 27 years ago, initially produced chips for optical storage and home entertainment devices. The company’s global presence and prominence increased as it expanded into the mobile market.
MediaTek’s strategy has primarily focused on providing cost-effective devices for mid-range and low-budget products, which has helped it gain significant market share in emerging countries across Asia and Africa.
In contrast to this, competitors such as Qualcomm have historically dominated high-end smartphones, especially in Western countries. MediaTek’s brand image is shaped by this divergence of market focus. The public views MediaTek as an affordable and less performance-oriented competitor to Qualcomm.
Alleged Identity Crisis
MediaTek’s identity crisis is a result of several factors. Recent efforts by MediaTek to compete with Qualcomm in the high end smartphone market have been significant. This is especially true for its Dimensity brand, which provides competitive performance as well as features such 5G connectivity.
MediaTek has increased its global market share with this move. The company has a market share of more than 40% in North America, Europe and Latin America. It also holds a 40- 50% TAM share (total market addressable) of the Pacific Rim and Latin America markets.
The company points out also that it has a TAM of over 30% on the fiercely competitive Chinese market. MediaTek couldn’t achieve this level of success with only lower-cost solutions.
MediaTek is still struggling with public perceptions and branding issues. MediaTek has always been quieter about its innovations and achievements than Qualcomm. Qualcomm has a more robust marketing strategy, including significant advertising and collaborations between high-profile carriers and brands. MediaTek has a weaker brand identity, or one that is more ambiguous due to this relative quiet.
MediaTek struggles to overcome its reputation as an affordable chipset producer despite its significant advancements, innovative products and technological advances that should elevate its industry status. MediaTek’s poor reputation makes it difficult to compete in the premium chipset segment where consumer perception and brand recognition are key factors.
The issue of geographic market dynamics is also important. MediaTek has a stronger presence in emerging market than established markets like the U.S. The company is not respected despite being a leader in many regions.
MediaTek’s Course-Correcting Efforts
MediaTek is not standing still in its efforts to address identity issues. It has made several strategic decisions. The company has increased its investment in its branding and marketing initiatives to elevate the perception of its brand globally. MediaTek’s ‘Incredible Inside’ campaign, for instance, is an excellent effort to promote MediaTek-powered products as high-quality and innovative.
MediaTek goes one step beyond by collaborating and partnering with well-known brands and companies to help enhance its brand. MediaTek has also benefited from partnerships with Intel, for example, to produce 5G laptop modems.
The company realized that it could only upgrade its image by focusing exclusively on cutting-edge technologies. Markets like IoT, automotive, data centers, Chromebooks, smart TVs — and even the smartphone space, which remains a huge market from a volume standpoint despite its slow growth — demand differentiating solutions, particularly AI capabilities that create new and compelling usage models.
These actions can help MediaTek redefine itself as a leader in the tech sector, not only mobile phones.
AI is a key factor in MediaTek’s future growth
MediaTek presented to the analyst community in Arizona last Thursday at an event. The company focused on its ongoing efforts to refine its appeal in various end markets. Its mobile, smart-edge, and power IC segments have CAGRs that range from 5.3% to 6.8%, respectively, in a TAM MediaTek expects to reach approximately $180 Billion by 2028.
MediaTek focused its attention on the potential of generative AI in the coming ten years. The company sees gen AI as the impetus for meaningful growth across its portfolio of products — which translates to more semiconductor content per device.
MediaTek is confident that its technology can push the innovation of gen AI in a unique way to its customers.
MediaTek has a bright future, and these megatrends are a good indication of that. However, it needs to devote more marketing resources in order to communicate its views on compelling usage patterns.
MediaTek Platform Solutions
MediaTek has seven distinct sub-brands covering a wide range of products, including smartphones, automotive, WiFi, Chromebooks and smart TVs. It also offers IoT applications and industrial applications. MediaTek needs to increase its marketing spending in order compete with Qualcomm and other brands who are focusing on branding and going-to-market initiatives.
(Image courtesy MediaTek)
MediaTek is facing challenges regarding market perception, branding and its transition to higher-end markets. However, calling this a “identity crisis”, might be an exaggeration. MediaTek is going through a phase of identity development, which is both inevitable and necessary, as it tries to diversify and compete in different markets.
MediaTek Must Showcase Its Thought-Leadership Marketing Potential
It will be up to the company’s strategic marketing choices, its partnerships and its technological innovations if it is going to successfully navigate this change. MediaTek’s ability to navigate this evolution successfully will depend on its strategic marketing, partnerships, and technological innovation choices.
MediaTek needs to be able confidently explain usage models in great detail if it wants to position itself at the forefront of AI. The company’s executive leadership is strong and it has shown impressive results in the business world, but there are noticeable hesitations at analyst events when presenting detailed applications. This hesitation may be due to a fear that the models presented might not align fully with their customers’ perspective.
As a thought-leader, MediaTek must guide the industry by introducing innovative frameworks and ideas that may initially differ from what customers expect. MediaTek will be respected by OEMs for its input on these usage patterns, even if the OEMs choose to implement them in a different way. MediaTek can enhance its brand image and increase adoption by developing clear visionary strategies.
This type of message leadership is risky. MediaTek, in the end, must increase its marketing investments and refine its messages on usage models, to assert control over market perceptions, differentiate its offering, and clearly communicate its unique benefits so as to remain competitive and relevant in a rapidly evolving tech sector.
