MediaTek: stick to the price bottom line and don't rule out raising prices along with TSMC.

CTOnews.com, November 1, according to a report in Taiwan's Electronic Times on November 1, MediaTek substantially revised down its operating forecast for the fourth quarter at the legal conference, and also put forward a relatively pessimistic view on the future of global mobile phones in 2023.

However, Tsai Lixing, chief executive of MediaTek, still stressed that he will not adopt the strategy of price reduction competition, will continue to adhere to the price bottom line, and does not rule out the possibility of following TSMC in raising prices.

CTOnews.com learned that MediaTek's revenue outlook for the fourth quarter is relatively conservative, with quarterly revenue expected to be about 108 billion New Taiwan dollars (about 24.408 billion yuan) to 119.4 billion New Taiwan dollars (about 26.984 billion yuan), a month-on-month decrease of 16 percent, a year-on-year decrease of 7 percent, 16 percent, and a gross profit margin of about 47 percent.

Cai Lixing said that even if the channel and customer inventory are now close to normal levels, while the future demand outlook is still uncertain, many customers are still very careful to control inventory and reduce orders for zero components in the fourth quarter.

According to previous reports, TSMC plans to increase the output price of 8-inch wafers by 6% and 12-inch wafers by 3-5%. Multiple sources confirmed the increase in contract prices in this range.

"with rising costs, MediaTek CEO Cai Lixing hinted that the price of the chip would go up with it: the flagship chip will be available in November."

MediaTek: revenue for the fourth quarter is expected to be NT $108 billion-119.4 billion, down 7% by 16% compared with the same period last year.