Sands Capital Management, LLC - Emerging Markets Growth Composite on MediaTek Inc.

MediaTek is a leading fabless semiconductor designer with a growing custom-AI-chip opportunity tied to Google's tensor processing units. The company is helping develop Google's seventh- and eighth-generation TPUs and Sands expects its economic contribution per chip to increase as designs become larger, more complex and more dependent on advanced packaging. The opportunity could become a more important growth driver as the investor debate shifts from whether the project happens to how much value MediaTek can capture. Sands deliberately keeps the position around 3 percent because the custom-chip push is a major strategic shift and engineering resources are constrained. The thesis is attractive but explicitly balanced against execution risk.