MediaTek is expected to see its second-quarter revenues rebound to over NT$60 billion (US$1.95 billion), thanks to mass shipments of its new Helio P90 and P35 mobile SoCs, as well as growth in shipments of the company's non-mobile SoC products, according to market observers.

Both the new MediaTek Helio P90 and P35 series are AI-enabled and feature an enhanced camera and 3D sensing capabilities for AR/VR experiences. Mass shipments of the new chips, which have received positive feedback from brand device vendors, are slated to kick off in the second quarter, the observers indicated.

Meanwhile, MediaTek continues to expand its presence in the non-mobile SoC field. The company has been diversifying its offerings to include SoC solutions for voice-assistant devices and IoT-related applications, and also developed its ASIC business that is building up its IP portfolio for chip demand coming from the server, high-speed transmission and AI sectors.

MediaTek estimated previously revenues would decline 12-20% sequentially in the first quarter of 2019 and register flat or slight growth in all of the year.

MediaTek CEO Rick Tsai commented during the company's most recent investors meeting that the worldwide smartphone market growth will remain slow until 5G-compatible devices become commercially available. MediaTek is stepping up the development of its 5G-enabled solutions, said Tsai, adding that the company expects to introduce its 5G SoC series at the end of 2019 following the launch of its 5G modem chip in the first half of the year.

MediaTek will also roll out its new chip solutions for the next-generation Wi-Fi technology - Wi-Fi 6 (802.11ax), and automotive electronics products in 2019, Tsai disclosed. The company will continue to diversify its offerings for further product mix improvement, Tsai said.

Improvement in MediaTek's product mix is bearing fruit. Despite an anticipated revenue fall of up to 20%, MediaTek expects to post a gross margin of 38-41% in the first quarter of 2019 compared with 38.9% in the prior quarter.

MediaTek set its target gross margin this year at 40%, according to Tsai.