MediaTek released its first smartphone chip built on TSMC’s 2-nanometer process, part of a push to gain more ground in the premium phone segment.
The Dimensity 9600 Pro is meant for top-tier phones and comes with its own neural processing unit to handle generative AI right on the device. MediaTek says it’s 51% quicker at prompt processing than last year’s chip – basically the warm-up phase before an AI actually starts replying.
MediaTek also introduced the Dimensity 9600M, a 3nm chip meant for a wider range of flagship phones. Phones with both chips are coming “soon,” the company says – though they’re keeping quiet on which brands and exactly when.
The launch comes as phone makers push to run more AI features directly on their devices. Processing data locally cuts down on the need to send it to remote servers and can speed up response times for certain tasks, but it demands more computing power inside the phone, especially from neural processing hardware.
By moving to the 2nm process for the 9600 Pro, MediaTek is making a more aggressive push into premium phones – territory where Qualcomm has long held the upper hand. High-end devices tend to bring better margins for chipmakers, and AI capabilities have increasingly become a key selling point for manufacturers.
It also fits into a bigger pattern happening across the phone industry. Flagships keep getting pricier as companies cram in better hardware, more storage, and new designs. Case in point: Apple’s foldable iPhone, which was just got announced last week, tops out at $3,199 in the U.S. for the biggest storage option.
JC Hsu, MediaTek’s corporate senior vice president, said the company is working with phone makers to limit how much rising component costs get passed on to consumers. Surging AI demand has strained supplies of advanced components and squeezed 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 been a key mobile chip supplier to Chinese phone makers such as Xiaomi, Oppo, and Vivo. The Dimensity 9600 Pro and 9600M give those companies, along with other manufacturers, new processors for phones with a stronger focus on AI features.
MediaTek isn’t just focused on phones, either. It’s been building out data-center and custom-chip products too, riding the wave of cloud providers and tech companies pouring cash into AI infrastructure.
MediaTek said its first AI accelerator built for a major U.S. cloud provider is set to enter mass production in the fourth quarter. The company declined to name the customer.
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