MediaTek reported a steep decline in smartphone revenue and falling net income on Friday, even as its board approved a $5 billion discretionary financing framework and management raised its artificial intelligence chip targets. Mobile phone revenue fell 14% sequentially and 20% year-over-year in the second quarter, dragged down by a global smartphone market that MediaTek's chief executive projects will contract by roughly 15% in units across all of 2026. A memory chip shortage has sent component costs soaring more than 90% since late 2025. Total consolidated revenue for the quarter came in at NT$152.2 billion (approximately $4.71 billion USD), up 1.2% year-over-year, rescued largely by the Smart Edge Platforms segment, which grew 19% sequentially and 26% year-over-year. Net income fell 12.3% year-over-year to NT$24.6 billion (approximately $762 million USD), with earnings per share at NT$15.28 (approximately $0.47 USD), down from NT$17.50 (approximately $0.54 USD). MediaTek's stock closed up 2.7% at NT$3,235 on Friday, with shares climbing roughly 148.6% year-to-date. The $5 billion financing framework is a discretionary budget to "agilely support our long-term growth and capitalize on massive data center opportunities," according to Chief Executive Rick Tsai. Chief Financial Officer David Ku said primary uses include