GoKawiilFirst look: MediaTek has introduced its first smartphone processor made using TSMC's 2-nanometer manufacturing process, stepping up its efforts to win more business in the high-end phone market. The Dimensity 9600 Pro is designed for flagship phones and includes a dedicated neural processing unit for generative AI tasks that run on the device. MediaTek said the chip improves prompt processing by 51% compared with the previous generation before an AI model begins producing a response.
The company also announced the Dimensity 9600M, a 3nm chip aimed at a wider range of flagship phones. MediaTek said handsets using both processors will launch soon, though it did not identify the manufacturers or provide a specific timeframe.
The new chips arrive as phone makers look for ways to run more AI features locally. On-device processing can reduce the need to send data to remote servers and may improve response times for certain tasks. It also requires more computing power inside the phone, particularly from neural processing hardware.
MediaTek is using the 2nm process for the 9600 Pro as it tries to compete more aggressively in premium phones, a segment where Qualcomm has a strong position. Higher-end devices generally offer better returns for chip suppliers, while AI features have become an important selling point for manufacturers.
The move also reflects changes in the broader smartphone market. Flagship phone prices are rising as manufacturers add more advanced components, larger storage capacities, and new hardware designs. Apple's foldable iPhone, announced last week, will cost up to $3,199 in the US for its highest-storage version.
MediaTek corporate senior vice president JC Hsu said the company is working with phone makers to contain the effect of higher component costs on consumers. AI demand has put pressure on supplies of advanced components and manufacturing capacity.
"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 told Reuters.
MediaTek has supplied mobile chips to Chinese phone makers including Xiaomi, Oppo, and Vivo. The Dimensity 9600 Pro and 9600M give those companies, as well as other handset makers, new processors for phones that place greater emphasis on AI features.
The company is also extending its AI strategy beyond smartphones. It has been developing data-center and custom-chip products as cloud providers and technology companies spend heavily on AI infrastructure.
MediaTek said its first AI accelerator for a major US cloud service provider is expected to enter mass production in the fourth quarter. The company did not identify the customer.