Chip designer MediaTek just posted its best month ever, a strong sign for Taiwan's chip industry and for anyone betting on AI hardware demand.

• August sales jumped to a record, up 32% from July and 44% from a year earlier.
• The company is about to launch its first flagship phone chip built on TSMC's 2-nanometer process, including a new high-end Pro version.
• Its first AI accelerator chip goes into mass production this quarter, with data center sales expected to top $2 billion this year.
• A partnership with Nvidia on a new super chip is due to hit the market by year end.
• The gain comes despite a weak phone market, where global smartphone shipments are down about 15% this year.

Outlook: MediaTek expects sales this quarter to hold flat or grow slightly, with full-year dollar revenue landing at the top of its earlier target range.