MediaTek unveils first 2nm mobile chip to challenge Qualcomm

Taiwan's MediaTek on Tuesday unveiled the Dimensity 9600 Pro, its first mobile processor built on TSMC's Taiwan Semiconductor Manufacturing Company Limited ↗ 4.25% cutting-edge 2-nanometer manufacturing process, in what amounts to the chipmaker's most aggressive bid yet for the premium smartphone market dominated by Qualcomm ↗ 1.75%.

The company also introduced the Dimensity 9600M, fabricated on TSMC's 3-nanometer process and aimed at a broader tier of flagship devices. Both chips are designed to run increasingly complex AI applications directly on the handset rather than relying on cloud servers.reuters+1

On-Device AI Takes Center Stage

The Dimensity 9600 Pro's dedicated neural processing unit delivers a 51% improvement over the previous generation in processing a user's prompt before an AI model begins generating a response, according to MediaTek. The chip can handle generative AI models with up to 30 billion parameters running entirely on-device.cryptobriefing+1

On raw performance, MediaTek is claiming up to 17% higher single-core and 15% higher multi-core CPU performance, alongside a 61% reduction in multi-core power consumption compared to its predecessor. The 9600 Pro carries an estimated price of up to $220, putting it within range of Qualcomm's competing flagship chipsets priced between $240 and $260.cryptobriefing

Xiaomi, Oppo, and Vivo are among the customers expected to adopt the new processors, with the first devices anticipated as early as October.reuters+1

Broader Ambitions Beyond Smartphones

The launch comes as MediaTek's market value has surpassed Qualcomm's this year, underscoring the shifting competitive landscape. JC Hsu, corporate senior vice president at MediaTek, said the company was working with handset makers to limit the effect of higher component costs on consumers as the AI boom strains supply chains.reuters

"As the overall market moves to higher prices, I believe there is still room for us to increase our share of the flagship segment," Hsu said.reuters

MediaTek is also expanding well beyond phones. Its first AI accelerator designed for a major U.S. cloud service provider is expected to enter mass production in the fourth quarter of this year. Last month, the company raised $3.9 billion through a convertible bond sale, with Nvidia ↗ 2.87% investing $3.5 billion in the offering and Alphabet ↗ 2.00% also participating.devdiscourse+2