MediaTek (2454.TW) Seen as Key to Musk's Terafab, Kuo Says

MediaTek (2454.TW) is likely to become the strategic partner for Elon Musk’s semiconductor initiative Terafab, helping deploy Intel’s 14A advanced process and packaging technology, with pilot production set to begin in 2028, according to TF International Securities analyst Ming-Chi Kuo. Kuo’s latest industry survey shows Terafab faces execution pressures from an ambitious scope, a tight nine-month design cycle and manpower gaps. MediaTek’s existing experience with Intel’s 16-nanometer node and EMIB-T packaging, plus faster-than-expected Google TPU projects, position it to speed up technology onboarding and lower risks. MediaTek also supplies Wi-Fi SoCs for SpaceX’s Starlink, providing a trusted supplier relationship. Kuo expects the tie-up to lift Terafab’s execution efficiency and bolster MediaTek’s AI ASIC market standing, while Taiwan’s round-the-clock R&D model could further accelerate cross-time-zone development.