MediaTek introduced a new smartphone chip on Tuesday. This chip is built using the most advanced TSMC manufacturing process and aims to capture the premium device market by being capable of processing more artificial intelligence functions directly on the device.
This move is part of a broader strategy to increase competitive standing against American rival Qualcomm in the high-end phone segment, where chipmakers achieve better margins due to expensive devices and AI features.
MediaTek's market value exceeded that of Qualcomm earlier this year. MediaTek stated that the Dimensity 9600 Pro is the first mobile processor created on TSMC's 2-nanometer process. It is worth noting that last week Apple unveiled the A20 Pro for its iPhone 18 Pro lineup, which also uses TSMC's 2nm process.
Furthermore, MediaTek released the Dimensity 9600M, manufactured on TSMC's 3-nanometer process, which targets a wider segment of the flagship market. The company announced that the first phones equipped with these two chips will soon go on sale. Previously, the company supplied chips to Chinese clients, including Xiaomi, Oppo, and Vivo.
The 9600 Pro chip integrates a specialized AI processor known as a Neural Processing Unit (NPU). According to MediaTek, this NPU can perform more complex generative AI tasks directly on the phone. The company noted that the NPU provided a 51% improvement over the previous generation in user query processing speed before answer generation, although it did not provide further details.
Flagship Device Segment
JC Hsu, Senior Vice President of Corporate Affairs at MediaTek, stated that the company is collaborating with phone manufacturers to minimize the impact of rising component costs on end consumers, as the AI boom puts strain on supply chains. Nevertheless, Hsu saw opportunities in how advanced hardware and new AI features are making higher prices more common.
Hsu said: "As the overall market moves towards higher prices, I believe we still have an opportunity to increase our share in the flagship segment."
MediaTek Dimensity 9600 Pro Features
MediaTek, one of the world's largest smartphone chip developers, is also actively developing its AI business, bringing it to data center and custom product markets, as technology companies invest billions of dollars in AI infrastructure. The first AI accelerator developed by the company for a major American cloud service provider is expected to enter mass production in the fourth quarter.
Last month, the company raised $3.9 billion through the sale of convertible bonds. In this deal, Nvidia invested $3.5 billion, and Alphabet, a long-time partner of MediaTek in AI infrastructure, also participated.