Mediatek launches fresh smartphone chips that use TSMC's latest 2nm technology

MediaTek has unveiled the Dimensity 9600 Pro, its first mobile chip built on Taiwan Semiconductor Manufacturing Co.’s 2-nanometer process, as the company takes a more direct shot at Qualcomm in the premium smartphone market.

The processor is MediaTek’s first for phones to use TSMC’s 2nm manufacturing, the same generation of process technology that Nikkei Asia reports also goes into Apple’s folding iPhone Duo. The chip also packs Arm’s latest G2-Ultra NX graphics core and can handle 4K slow-motion video at up to 240 frames per second.

The chip features two neural processing units that handle AI workloads, allowing generative AI features to run directly on the phone instead of relying on the cloud. MediaTek says this also cuts the time between an AI query being received and the start of the response by 51% compared with the previous generation.

Mediatek aims for Qualcomm’s premium turf

MediaTek also introduced the Dimensity 9600M, a ‘lesser’ chip version aimed at a wider range of price points. While the flagship 9600 Pro uses TSMC’s 2nm process, the 9600M is built on the company’s older 3nm technology, and as such is seen as a less premium version. Both chips are expected to reach the market before the end of the year.

MediaTek has long counted Xiaomi, OPPO and Vivo among its major Chinese smartphone customers. OPPO and vivo are expected to be among the first manufacturers to launch phones with the new chips, following a similar rollout for the Dimensity 9500 series.

MediaTek has also long been known for its mid-range smartphone chips, but the move to a 2nm flagship puts the company in a much more direct fight with Qualcomm at the high end. The Dimensity 9600 Pro and 9600M chips are part of that push into higher end devices, where AI features can work even better and bring higher margins.

Running generative AI directly on smartphones has become a major point of competition among chipmakers, and MediaTek is looking to gain an edge by being one of the first to adopt TSMC’s latest manufacturing technology.

Rising component costs weigh on launch

The launch comes during a period where the supply of key chip components has been rough. MediaTek said it is working with customers to improve chip performance and offset higher component costs as a memory-chip shortage drives prices higher, Nikkei Asia reported.

CEO JC Hsu said the company is also working closely with handset makers to help reduce the effect of rising costs.

MediaTek is also looking beyond the smartphone market as it expands into AI infrastructure. The push is backed by a $3.9 billion convertible bond sale that attracted investment from Nvidia and Alphabet.

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