NVIDIA is putting $3.5 billion into MediaTek convertible bonds and bolting the Taiwanese chip designer into its NVLink Fusion custom-silicon platform, in a deal announced September 1, 2026 that pushed MediaTek shares up about 10% on the Taiwan Stock Exchange.
NVIDIA takes 90% of a record Taiwanese bond offering
MediaTek priced a $3.9 billion overseas convertible bond, the largest offshore convertible issuance in Taiwan's capital-market history, and NVIDIA subscribed to $3.5 billion of it — roughly 90% of the offering. Alphabet, MediaTek's Google Tensor and Kompanio partner, also joined the round. It is NVIDIA's first direct investment in a Taiwanese company and follows the two firms' work on the GB10 Grace Blackwell Superchip inside NVIDIA's DGX Spark developer computer.
NVLink Fusion turns MediaTek into a custom-ASIC arm for hyperscalers
The deal centers on MediaTek adopting NVIDIA's NVLink Fusion, the chiplet fabric that lets hyperscalers plug custom accelerators into the same NVLink domain as NVIDIA Blackwell GPUs and Grace CPUs. Chief executive Rick Tsai said the investment "strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI." Jensen Huang called MediaTek "one of the world's great semiconductor companies" in NVIDIA's press release.
Data center, PCs and automotive are all on the roadmap
Beyond data-center ASICs, the two companies will extend an existing PC partnership around NVIDIA's RTX Spark and DGX Spark chips, and jointly develop automotive platforms built on MediaTek's Dimensity Auto line — one of the few non-NVIDIA cockpit and ADAS SoCs shipping in volume. MediaTek disclosed in June that its custom-AI-chip division is on track to contribute $2 billion of revenue this year, with the broader accelerator opportunity potentially reaching $80 billion by 2027.
A circular financing question and a Broadcom problem
The convertible structure has revived questions about NVIDIA's growing habit of investing in customers and suppliers — from Lancium and Marvell Technology to SpaceX — while those partners simultaneously buy its silicon. For MediaTek, the immediate strategic prize is a beachhead in data-center silicon where Broadcom and Marvell currently dominate hyperscaler ASIC work, and where MediaTek has been building capability alongside its lead in global smartphone chip market share.
The MediaTek tie-up lands the same week NVIDIA disclosed a $21 billion SpaceX stake and extended its NVLink work with Google TPU v8 partner MediaTek on the Zebrafish design.
Reporting based on coverage from Yahoo Finance, CNBC, Taipei Times, TechTimes and NVIDIA's investor communications.