NVIDIA Invests $3.5 Billion in MediaTek to Co-Develop Custom AI ASICs and Automotive Silicon

On September 1, 2026, NVIDIA finalized a $3.5 billion strategic investment and multi-year engineering pact with fabless semiconductor giant MediaTek. Backed by a $3.5 billion convertible bond agreement, the partnership combines MediaTek's custom ASIC design capabilities with NVIDIA's proprietary NVLink Fusion interconnect and AI architectures to co-design custom datacenter accelerators and automotive smart cockpit processors for global hyperscalers and automakers.

Scaling Custom AI Silicon via NVLink Fusion

As cloud hyperscalers increasingly demand custom application-specific integrated circuits (ASICs) tailored to internal LLM workloads, the NVIDIA-MediaTek alliance bridges a crucial gap. MediaTek gains access to NVIDIA's high-bandwidth NVLink Fusion chiplet interconnect IP, allowing client-specific custom compute dies to connect directly to NVIDIA GPU clusters, Blackwell/Rubin memory subsystems, and Mellanox Quantum InfiniBand switches.

Key Pillars of the $3.5B Partnership

• Custom Cloud ASICs: MediaTek designs custom AI accelerators incorporating NVIDIA NVLink Fusion for tier-1 hyperscalers.
• Automated Driving & Smart Cockpit: Co-developing Dimensity Auto Cockpit processors integrated with NVIDIA RTX graphics and Drive Thor AI safety stacks.
• Silicon Supply Security: Leveraging shared advanced packaging allocations across TSMC CoWoS and 3nm foundry lines.

Strategic Alignment in the AI Accelerator Market

The massive capital injection cements NVIDIA's dominance across both off-the-shelf GPU architectures and the rapidly expanding custom ASIC sector, preempting rival custom silicon efforts from Broadcom and Marvell while providing MediaTek with an enterprise datacenter growth engine.

Deal Structure & Details