MediaTek Targets Premium Market with New AI Chips

MediaTek has unveiled two new smartphone processors, the Dimensity 9600 Pro and the Dimensity 9600M, designed to power the next generation of premium mobile devices. The announcement marks a significant shift as the company seeks to strengthen its position against established rivals by leveraging the most advanced manufacturing technology available from its partner, TSMC.

The core of this update is a focus on on-device artificial intelligence. Both chips are engineered to handle complex AI tasks locally, meaning smartphones can process data without constantly relying on cloud servers. This approach is intended to improve response times and reduce data usage, addressing a key demand in the current mobile market.

Manufacturing Nodes Define Chip Hierarchy

The two new chips are distinct in their manufacturing processes, which directly impacts their performance and cost. The Dimensity 9600 Pro is the first smartphone processor built using TSMC’s 2-nanometre process. In plain terms, this smaller manufacturing node allows for more transistors on the chip, leading to better efficiency and power. The Dimensity 9600M uses the slightly larger 3-nanometre process, targeting a broader segment of flagship phones that require high performance but may not need the absolute top-tier efficiency.

AI Speed Gains Have Costs

MediaTek claims the new Pro chip delivers a 51% improvement in processing user prompts before an AI model generates a response. This speed is handled by a dedicated neural processing unit, a specific part of the chip designed for these tasks. However, this performance boost comes with a trade-off. The advanced manufacturing and added components increase production costs, which may contribute to higher prices for consumers buying these devices.

According to reporting from GN technics/mobile, MediaTek executives acknowledge that rising component costs are straining supply chains. The company is working with smartphone manufacturers to minimize the impact on final prices, but the trend toward more expensive, AI-capable hardware is reshaping the premium market. Competitors like Apple are also raising prices, with their new foldable device set to cost up to $3,199 in the US.

Expansion Beyond Mobile Devices

While the immediate news focuses on smartphones, MediaTek is also expanding into data centers. The company is developing AI accelerators for major cloud service providers, with mass production expected in the fourth quarter. This diversification helps reduce reliance on the volatile mobile market and taps into the growing demand for AI infrastructure.

To support this growth, MediaTek recently secured significant funding. The company raised $3.9 billion through a convertible bond sale, with a substantial contribution from Nvidia. This financial move underscores the scale of MediaTek’s ambitions to compete not just in mobile, but across the broader semiconductor landscape.