MediaTek, one of the world’s largest smartphone‑chip designers, revealed on Tuesday its newest flagship processors built on Taiwan Semiconductor Manufacturing Co.’s most advanced manufacturing nodes. The Dimensity 9600 Pro uses TSMC’s cutting‑edge 2‑nanometre process, while the Dimensity 9600M is produced on a 3‑nanometre line and is aimed at a wider range of premium devices.
On‑device AI for next‑generation phones
The 9600 Pro includes a dedicated neural processing unit (NPU) that MediaTek says can handle more complex generative‑AI tasks directly on the phone. According to the company, the NPU delivers a 51% improvement over the previous generation when processing a user’s prompt before an AI model begins generating a response.
Competing with Qualcomm
By moving to the most advanced silicon, MediaTek hopes to close the gap with U.S. rival Qualcomm in the high‑margin premium handset segment, where higher‑priced devices and AI features drive stronger profitability. The company noted that its market value had already surpassed Qualcomm’s earlier this year.
Pricing pressures and market outlook
JC Hsu, corporate senior vice president at MediaTek, acknowledged that rising component costs could affect consumers as the AI boom strains supply chains. Nevertheless, he sees opportunities for the company as advanced hardware and new AI capabilities make higher price points increasingly common. “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.
Apple’s recently announced foldable iPhone, priced up to $3,199 for the top‑storage model in the United States, underscores the trend toward premium pricing in the industry.
Expanding AI beyond phones
MediaTek is also broadening its AI portfolio into data‑center and custom‑chip products. Its first AI accelerator for a major U.S. cloud service provider is slated for mass production in the fourth quarter of this year.
The company raised $3.9 billion last month through a convertible bond sale, with significant participation from Nvidia and Alphabet, reflecting strong investor confidence in its AI strategy.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.