MediaTek turned its focus to cars and artificial intelligence chips and did not fight a price war with Qualcomm.

CTOnews.com April 29 news, quoted by Reuters, MediaTek CEO Cai Lixing said: "our development strategy has rapidly shifted to the automotive and artificial intelligence industries, and is expected to achieve growth in the next 3-5 years."

Cai Lixing said: "the current external market competition is very fierce, we will not lay off staff at this stage, nor will we hire new members. Every existing employee is valuable to MediaTek."

Cai Lixing said that all industry participants, including MediaTek, should follow the generative AI tide represented by ChatGPT, and the company will also invest heavily in this area.

As for the smartphone market, MediaTek acknowledges that global consumer demand for it was low in the first quarter, but the company expects signs of recovery by the end of the year: mobile phone sales are expected to start to pick up in the second quarter and second half of the year.

As for lower prices and Qualcomm competition, MediaTek believes that this "bottom competition" (racing to the bottom) is not an effective policy, which can neither effectively boost terminal demand nor significantly increase market share.

CTOnews.com is attached to the original Reuters report, which can be read by interested users.