MediaTek Cuts Employee Bonuses by 15% Amid DRAM Crisis, Signaling Chip

MediaTek Cuts Employee Bonuses by 15% Amid DRAM Crisis, Signaling Chipset Shipment Slowdown

The Taiwanese chipmaker is reducing second-half bonuses for 12,000 employees as DRAM shortages threaten its smartphone SoC dominance, with the Dimensity 9600’s 2nm process and pricing strategy critical to 2026 leadership.

MediaTek is adjusting its financial incentives for employees, handing out bonuses for the second half of 2025 that are 15% lower than the first half—a move analysts say reflects growing concerns over declining chipset shipments. The company, which relies heavily on smartphone SoCs for revenue, is bracing for the fallout of a persistent DRAM shortage, with a cumulative bonus pool of $363 million distributed among 12,000 eligible staff. Each employee will receive an average of $30,247, down from previous payouts.

This reduction comes as the company’s smartphone chipset revenue accounted for 59% of its total earnings in late 2025, underscoring its vulnerability to supply chain disruptions. While MediaTek has begun diversifying into other markets, its near-term survival hinges on maintaining its lead in the premium smartphone segment—a challenge complicated by rising memory costs.

The upcoming Dimensity 9600, built on a 2nm process, represents a pivotal moment for the company. If priced competitively against Qualcomm’s Snapdragon 8 Elite Gen 6 Pro and Gen 6, it could help MediaTek retain market share in 2026. However, the company’s ability to navigate the DRAM crisis will determine whether its shipments stabilize or continue to decline.

MediaTek Cuts Employee Bonuses by 15% Amid DRAM Crisis, Signaling Chipset Shipment Slowdown

Key Financial Adjustments

Bonus Pool: NT$11.4 billion ($363 million) for H2 2025
Employee Count: 12,000 eligible workers
Average Payout: NT$950,000 ($30) per employee
Decline: 15% reduction compared to H1 2025

The decision to cut bonuses aligns with broader industry trends, where chipmakers are recalibrating expectations due to memory shortages. MediaTek’s ability to offset these challenges will depend on both its technical advancements—such as the Dimensity 9600—and its pricing strategy in an increasingly competitive market.

For now, the company’s focus remains on mitigating the impact of the DRAM crisis while preparing for the launch of its next-generation chipset. Whether this strategy proves sufficient remains to be seen, but the bonus reduction signals a cautious outlook for the remainder of the year.

MediaTek Cuts Employee Bonuses by 15% Amid DRAM Crisis, Signaling Chipset Shipment Slowdown

Key takeaways