Computex 2024 Day 3 – Box and Horses

MediaTek: Dark horse of Computex

• Mediatek rolled out the big guns at its keynote with both Arm and Nvidia CEOs joining Rick Tsai on stage and although it did not say very much, it certainly made its presence felt.
• The main theme of the session was that MediaTek intends to broaden its portfolio to include AI acceleration in the cloud as well as hinting that it would follow Qualcomm into PCs and AI at the edge.
• This is where its partnership with Nvidia which started in automotive becomes very relevant.
• This partnership exists as there is a very good fit for these two companies in automotive semiconductors.
• This is because the digital cockpit and ADAS domains are merging and one needs both CPUs to run the cockpit and GPUs to run machine vision for ADAS.
• Nvidia retired its Tegra processor quite some time ago and so there is a very good fit between Mediatek and Nvidia to jointly address this space.
• However, it does not stop there and Mediatek also intends to address the custom niche for AI accelerators in the cloud which is where companies want a customised system to train and run their AI in the cloud.
• Counterpoint Research has forecasted that this will be worth $45bn in 2028 and it looks to me like Mediatek will address this using Nvidia IP.
• I suspect that Nvidia will take most of the value from this arrangement, but given Nvidia’s strength in this space, there is going to be plenty left over for MediaTek.
• Having both Jensen Huang and Rene Haas on stage at its keynote was a big PR coup and its association with Nvidia is going to ensure that it will be able to open the door to any potential client it wants to address.

Floor vs keynotes: boxes out of the door.

• While the keynotes were all about how the world of computing will be changed by AI, the mood on the floor of the exhibition was quite different.
• Here, there are two halls and 5 floors full of companies that offer components, subsystems and accessories that are used to make computers of all shapes and sizes.
• The stands of all of the major players have a section which is related to AI PCs, but the vast majority of the show remains about developing and selling bits and pieces that enhance PC performance or customises them for a specific use case.
• There are also a large number of players that offer components that make desktops look attractive which I suspect sell in very low volumes.
• This contrast clearly demonstrates that the AI PC is a brand-new concept and one that is largely untested on the PC buyer.
• The demonstrations are excellent meaning that if the software lives up to its billing, then there is scope for an uplift in PC shipments as well as a halt of the bleeding from Windows to Macintosh.
• This is likely to be decided in H2 2024 as the first AI PC devices are shipping on June 18.