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MediaTek Unveils New Smartphone Chips Using TSMC’s Advanced Technology

MediaTek unveils new smartphone chips using TSMC’s advanced technology, targeting premium devices with stronger on-device AI capabilities.

Taiwanese chipmaker MediaTek has unveiled two new smartphone processors built using advanced manufacturing technology from Taiwan Semiconductor Manufacturing Co. (TSMC), as it seeks to expand its presence in the premium mobile device market.

The company announced the Dimensity 9600 Pro and Dimensity 9600M on Tuesday, with both processors designed to support smartphones with more sophisticated artificial intelligence capabilities running directly on the device.

MediaTek said the Dimensity 9600 Pro is its first smartphone processor manufactured using TSMC’s 2-nanometre process, while the Dimensity 9600M is built using TSMC’s 3-nanometre technology and targets a broader segment of the flagship smartphone market.

The first smartphones powered by the new processors are expected to arrive soon. MediaTek already supplies chips to major Chinese smartphone manufacturers, including Xiaomi, Oppo and Vivo.

The Dimensity 9600 Pro also features a dedicated neural processing unit (NPU) designed to handle more demanding generative AI applications on smartphones.

According to MediaTek, the processor delivers a 51% improvement over its previous generation in processing user prompts before an AI model begins generating a response.

The launch comes as MediaTek continues to compete with Qualcomm for a larger share of the premium smartphone market, where demand for more powerful hardware and on-device AI capabilities is creating opportunities for higher-value chips.

MediaTek’s market value overtook Qualcomm’s earlier this year, underscoring the Taiwanese company’s growing position in the global semiconductor industry.

JC Hsu, MediaTek’s corporate senior vice president, said the company was collaborating with smartphone makers to minimise the effect of higher component costs on consumers as increasing AI demand strains supply chains.

Hsu said the shift towards more expensive smartphones could also provide MediaTek with an opportunity to increase its presence in the flagship market.

“As prices continue to rise across the market, I believe we still have an opportunity to expand our share of the flagship segment,” Hsu said.

Rising smartphone prices are also reshaping the premium market, with Apple’s newly announced foldable iPhone set to sell for as much as $3,199 in the United States for its highest-storage version.

Beyond smartphones, MediaTek has been expanding its artificial intelligence business into data-centre and customised chip products as technology companies increase spending on AI infrastructure.

The company’s first AI accelerator designed for a major US cloud service provider is expected to enter mass production in the fourth quarter of this year.

MediaTek also secured $3.9 billion last month through a convertible bond sale, with Nvidia contributing $3.5 billion alongside a long-term AI infrastructure partner.

Goodness Anunobi 

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