At the DIGITIMES Asia Tech Forum 2025, semiconductor giants Qualcomm and MediaTek announced major strategic shifts, moving beyond mobile processors to focus on cloud AI application-specific integrated circuits (ASICs).
Both companies, historically dominant in smartphone system-on-chips (SoCs), are aiming to capture a share of the fast-growing cloud AI infrastructure market, which has been driven by surging demand for generative AI workloads, large language models, and data center acceleration.
Participation in Nvidia’s NVLink Fusion Consortium
In addition to their pivot, Qualcomm and MediaTek confirmed that they will join Nvidia’s NVLink Fusion consortium. This industry alliance seeks to standardize high-speed interconnects for heterogeneous AI compute environments, enabling seamless integration of CPUs, GPUs, and ASICs in hyperscale data centers.
Analysts note that participation in the consortium could help both companies accelerate product development, ensure interoperability, and strengthen competitiveness against established players like AMD and Intel in the data center AI space.
Expanding Beyond Mobile Dominance
For years, Qualcomm and MediaTek have been synonymous with mobile processors, powering billions of smartphones worldwide. However, as the global handset market matures, both companies are seeking new growth drivers.
- Qualcomm has already leveraged its expertise in AI acceleration through Snapdragon platforms, now scaling these technologies for the cloud domain.
- MediaTek, which has gained strong momentum in mid-to-high-end smartphones, is positioning itself to enter cloud-based AI inference and training solutions.
Industry Implications
The move by Qualcomm and MediaTek signals a broader industry trend: chipmakers diversifying into cloud AI to meet skyrocketing demand for generative AI computing power. Their entry into this space is expected to intensify competition while also broadening the ecosystem of available AI-optimized silicon.
Looking Ahead
By venturing into cloud AI ASICs and aligning with Nvidia’s NVLink Fusion consortium, Qualcomm and MediaTek are positioning themselves at the heart of next-generation data center innovation. This pivot underscores the semiconductor industry’s race to power the AI-driven future across devices, networks, and the cloud.
