MediaTek Prepares for Potential US Tariffs Amid Uncertainty

MediaTek, Taiwan’s leading chip design firm, has been running simulations in anticipation of potential U.S. tariffs on Taiwanese goods, according to CEO Rick Tsai. Despite the uncertainty surrounding this issue, Tsai expressed confidence that the impact would be “manageable” in 2025.

Taiwan’s tech industry, including giants like TSMC, faces the risk of tariffs as U.S. President Donald Trump has proposed such measures to incentivize semiconductor production within the United States. On the campaign trail, Trump criticized Taiwan for allegedly taking U.S. semiconductor business.

Trump has outlined plans to impose tariffs on imported chips, as well as other products such as pharmaceuticals and steel, though no specific timeline has been set. When asked about the potential effects on MediaTek, Tsai referred to the situation as “very unpredictable,” but assured that the company is taking proactive measures, such as simulations, to prepare for the possible changes.

Although Tsai acknowledged the unpredictability of the situation, he believes the impact of any tariffs in the short term will be manageable, especially for 2025. “There are so many variables, so it’s very difficult to give an accurate estimate now,” he said.

In addition to trade concerns, MediaTek is facing pressure from the rise of DeepSeek, a Chinese AI startup whose lower-cost models are posing a challenge to Western tech investments in chipmakers and data centers. Despite this, Tsai remains optimistic about the AI market, noting that the spread of AI will benefit average users.

MediaTek’s shares have outperformed the broader market in 2025, showing a 7.8% gain so far, while the overall market has gained only 1.9%. However, the company’s shares closed flat on Friday.