Taiwan: MediaTek has unveiled the Dimensity 9600 Pro, its first smartphone processor built using Taiwan Semiconductor Manufacturing Co’s (TSMC) 2-nanometre manufacturing process, as the chipmaker seeks to expand its presence in the premium smartphone market.
The company also introduced the Dimensity 9600M, produced using TSMC’s 3-nanometre process and targeting a broader segment of flagship smartphones. MediaTek said devices powered by both processors are expected to launch soon.
Can MediaTek Gain Ground in the Premium Smartphone Market?
The launch is part of MediaTek’s push to compete more aggressively with US rival Qualcomm, particularly in high-end smartphones where advanced AI capabilities and higher device prices offer chipmakers stronger margins.
The Dimensity 9600 Pro features a dedicated neural processing unit designed to run more complex generative AI applications directly on smartphones. MediaTek said the processor delivers a 51% improvement over its previous generation in processing a user prompt before an AI model begins generating a response.
MediaTek already supplies processors to major Chinese smartphone manufacturers, including Xiaomi, Oppo and Vivo. Its market value also surpassed Qualcomm’s earlier this year, reflecting the Taiwanese chipmaker’s growing position in the semiconductor industry.
Will Rising Component Costs Slow AI-Driven Smartphone Growth?
MediaTek senior vice president JC Hsu said the company was working with smartphone manufacturers to reduce the impact of rising component costs on consumers as growing demand for AI hardware puts pressure on supply chains.
Hsu said higher smartphone prices could nevertheless create opportunities for MediaTek to increase its share of the flagship segment as manufacturers add more advanced hardware and AI features.
Beyond smartphones, MediaTek is expanding into data-centre and custom-chip markets as technology companies increase spending on AI infrastructure. The company expects its first AI accelerator developed for a major US cloud service provider to enter mass production in the fourth quarter of 2026.
MediaTek raised $3.9 billion through a convertible bond sale last month. Nvidia invested $3.5 billion in the offering, while Alphabet, a long-term MediaTek partner in AI infrastructure, also participated.