MediaTek Sees Tier-2, Tier-3 Cities Powering India’s Smartphone Boom

MediaTek expects India’s next wave of smartphone adoption to be led by tier-2 and tier-3 cities, driven by rising affordability, 5G expansion, and a growing appetite for connected appliances, according to Anku Jain, managing director of MediaTek India.

In an interview with NDTV Profit, Jain said the company is bullish on India’s consumption story across both mobile and smart home devices. “India’s demographic dividend is real. Tier-2 and tier-3 markets are going to be the growth engine for smartphones and smart appliances, especially with 5G and AI technologies becoming mainstream,” he said.

MediaTek powers more than 55% of all smartphones sold in India and is a key global player, with its chipsets in over 2 billion connected devices worldwide. On Friday, the company launched its Dimensity 8450 chipset, designed to enhance power efficiency and AI performance for next-gen smartphones.

While Jain acknowledged India’s ambitions to become a chip manufacturing hub, he clarified that MediaTek, being a fabless company, won’t directly participate in semiconductor fabrication under India’s Chip Mission or Electronic Component Manufacturing Scheme. “Fabs are the last frontier. The government’s push is in the right direction, and as these schemes mature, we can plug into the ecosystem,” he added.

On the issue of rare earth magnet shortages, Jain said the company has so far managed through strong vendor relationships and accurate demand forecasting. “We’ve planned well and we’re confident that our supply chain will hold up,” he said.

MediaTek also sees a growing role in powering India’s smart home market, with its AI chipsets increasingly being integrated into appliances like TVs, speakers, and refrigerators.