Taiwan's MediaTek announced a new smartphone chip produced with TSMC's cutting-edge manufacturing technology, aiming for the premium smartphone market with semiconductors that can execute more AI functionalities directly on the device.
The initiative is a component of a larger strategy to compete with US competitor Qualcomm in high-end phones, where expensive devices and AI functionalities provide chip manufacturers with improved profits.
MediaTek announced that the Dimensity 9600 Pro is its initial mobile processor developed with Taiwan Semiconductor Manufacturing Co's advanced 2-nanometre technology. It also launched the Dimensity 9600M, produced with TSMC's 3-nanometre technology and targeting a wider segment of the flagship smartphone market.
The company announced that the initial smartphones utilizing the two chips will be released shortly. It has previously provided chips to Chinese smartphone customers like Xiaomi, Oppo, and Vivo.
The 9600 Pro features a dedicated AI processor, referred to as a neural processing unit, which MediaTek claims can manage more intricate generative-AI applications directly on the device.
It mentioned, without providing additional specifics, that the NPU achieved a 51 percent enhancement compared to the prior generation in processing a user's query prior to an AI model commencing response generation.
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JC Hsu, senior vice president at MediaTek, mentioned the firm is collaborating with smartphone manufacturers to find solutions to mitigate the impact of rising component prices on consumers amid supply chain pressures from the AI surge.
Nonetheless, Hsu recognized prospects for MediaTek as enhanced hardware and novel AI functionalities lead to more frequent higher price points. Apple's newly announced foldable iPhone will be priced at up to $3,199 in the United States for the model with the largest storage capacity.
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MediaTek, a leading designer of smartphone chips globally, has been broadening its AI operations into custom-chip and data-centre products, as tech firms invest billions into AI infrastructure.
The initial AI accelerator created for a leading U.S. cloud service provider is anticipated to undergo mass production in the fourth quarter of this year.
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Last month, MediaTek secured $3.9 billion by selling convertible bonds. Nvidia put $3.5 billion into the offering, and Alphabet, which has been a long-time partner of MediaTek in AI infrastructure, took part as well.