Taiwanese chip designer MediaTek has disclosed a pair of new mobile processors intended to push the company deeper into premium smartphones and to enable more advanced AI features running directly on devices. The headline product, the Dimensity 9600 Pro, is MediaTek's first mobile processor manufactured using Taiwan Semiconductor Manufacturing Co's 2-nanometre process. Alongside it, the company introduced the Dimensity 9600M, built on TSMC's 3-nanometre process and targeted at a wider slice of the flagship market.
MediaTek said the first smartphones that use these processors will be launched soon. The company has a track record of supplying chips to Chinese handset makers, including Xiaomi, Oppo and Vivo, and plans to extend its footprint in higher-priced models where AI features and premium pricing can support stronger margins.
Both new chips emphasize on-device AI workload handling. The 9600 Pro incorporates a dedicated neural processing unit - an NPU - that MediaTek says can support more complex generative-AI applications locally on a handset. Without providing further technical detail, the company reported that this NPU delivers a 51% improvement over the previous generation when processing a user's prompt before an AI model begins to generate a response.
The product rollout comes as part of a deliberate effort to close the gap with U.S. rival Qualcomm in the premium-phone segment. MediaTek has said it sees an opportunity to capture more share as device prices trend higher and AI-capable features become a selling point for flagship models.
Corporate senior vice president JC Hsu commented that MediaTek is collaborating with handset makers to manage the impact of elevated component costs on consumers. Hsu framed this as a response to supply-chain pressures tied to the ongoing AI boom, and said the company is exploring ways to limit how higher component costs are passed through to end users.
The company’s push into premium phones is occurring against a backdrop of higher retail pricing for some flagship devices. The recently announced foldable iPhone from Apple carries a U.S. retail price of up to $3,199 for the highest-storage version, an example MediaTek cited to illustrate the expanding price tiers in the market.
MediaTek's expansion is not limited to mobile silicon. The company said it is broadening its AI business into data-centre and custom-chip products. Its first AI accelerator designed for a major U.S. cloud service provider is expected to enter mass production in the fourth quarter of this year, according to the company.
Financially, MediaTek completed a convertible bond sale last month that raised $3.9 billion. Nvidia invested $3.5 billion in that offering, and Alphabet also participated, reflecting strategic interest from major cloud and AI infrastructure players. Earlier in the year, MediaTek's market value surpassed that of Qualcomm.
Market context and company strategy
MediaTek framed the product introductions as both a technological step forward and a commercial strategy to reach more lucrative tiers of the handset market. By adopting TSMC's most advanced nodes for mobile processors, the company is positioning silicon designed to handle heavier AI workloads on-device, reducing reliance on cloud compute for certain generative-AI functions.
Executives highlighted the interplay between component cost pressures and consumer pricing, noting active engagement with handset manufacturers to limit how cost increases affect buyers. Beyond smartphones, MediaTek is moving into cloud and custom chip markets, signaling an effort to diversify revenue streams as demand for AI infrastructure rises.
What's next
MediaTek said the first devices using the Dimensity 9600 Pro and 9600M will arrive soon but did not provide a detailed rollout schedule. The company continues to work with existing handset customers and is expanding its AI product portfolio with a data-centre accelerator expected to reach mass production in the fourth quarter.