The semiconductor world is currently feeling the pressure of a shifting market. It’s such a delicate scenario that even the industry giants are not immune. MediaTek, a dominant force in the mobile processor space, is making headlines as it prepares to hand out employee bonuses for the second half of 2025, where the company braces for a potential slowdown in the global smartphone market.
MediaTek is prepping for a chipset decline, employee bonus cuts
According to reports from Economic Daily News, approximately 12,000 eligible MediaTek employees will receive their H2 2025 bonuses this February. The total pool amounts to roughly $363 million. It’s noteworthy that the average payout per employee is still a substantial $30,247. Still, the number is 15.7% lower than the bonuses given out in the first half of the year.
The reason for this dip ties directly to the company’s financial performance. MediaTek typically links its bonus pool to pre-tax profits. Well, these fell from $2.1 billion in the first half of the year to around $1.8 billion in the second. As a result, there’s a smaller payout pool for the workforce as the company manages its bottom line.
The impact of the global DRAM shortage
Beyond the internal numbers (via Wccftech), MediaTek faces a perfect storm in the global supply chain. The lack of DRAM and storage space is a serious problem for the whole industry. When device makers don’t have enough memory parts, they make fewer phones. Consequently, MediaTek sells fewer chipsets, leading to a projected decline in shipments.
This crunch period is particularly risky for MediaTek because of its current revenue structure. Data shows that smartphone chipsets account for a staggering 59% of the company’s total revenue. This heavy reliance on a single sector makes the firm vulnerable to fluctuations in mobile demand and component availability.
Despite the current shipment decline, the company is not sitting still. MediaTek is betting big on the upcoming Dimensity 9600, which is expected to be its first 2nm chipset. The company is working to stay ahead of competitors (like Qualcomm) in terms of volume by branching out into other AI fields and maintaining aggressive pricing.
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