MediaTek develops Arm-based server chips with TSMC’s 3nm process

Taiwan-based chipmaker MediaTek is developing server processors using Arm’s CPU (central processing unit) and GPU (graphics processing unit), with plans for production with TSMC’s 3nm process. The company aims to start mass production of the new server chip in the second half of 2025, targeting orders from cloud service providers (CSP). The rapidly emerging AI server market demands high-performance chips from companies such as Nvidia and AMD for high-end models, but their excessive power consumption is driving new demand for low-power processors in areas without significant AI requirements, industry analysis has revealed. This shift has led to increased demand in the mid-to-low-end AI server market, where low-power Arm-based processors are now the focus for major cloud service providers. MediaTek will target CSP giants such as Microsoft, Google, and Meta, positioning its server business as a key priority in its operational strategy. [Economic Daily News, in Chinese]