Principal Analyst, Mobility & VR, Anshel Sag, gives his insights on MediaTek and Nvidia's deep partnership, sharing IP and software and co-designing SoCs.
Production of chips developed under this partnership is expected to begin in 2026, with hardware ready for vehicles in the 2027 model year. It’s likely that design wins will come much sooner, possibly even being announced as early as late 2023.The software-defined vehicle, established by Tesla, has become the driving force behind the demand within the automotive sector for better infotainment, digital cockpit, connectivity and ADAS capabilities.
As one indicator of Nvidia’s lackluster showing in this field, in the last quarter its automotive revenues grew by a mere $4 million quarter-over-quarter; those revenues have stayed firmly in the $200–300 million range for the last four quarters. Meanwhile, Qualcomm’s automotive business has been a bright spot for that company, growing 58% in fiscal Q1 and staying on pace to be a nearly $2 billion business this fiscal year, compared to $1.3 billion last year.
I believe that MediaTek’s partnership with Nvidia will help both companies be more competitive in the automotive space and will offer more choices to automotive OEMs and tier 1 manufacturers looking to accelerate the transition to the software-defined vehicle.
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