MediaTek beats Qualcomm (QCOM.US) to launch the first 2nm smartphone chip, Dimensity 9600 Pro, with a major boost in on-device AI performance.

MediaTek on Tuesday unveiled a new smartphone chip built with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's most advanced manufacturing process, targeting the high-end phone marketits semiconductor products enable more AI functions to run directly on-device. The move is part of MediaTek's broader strategy to compete with U.S. rival Qualcomm (QCOM.US) for the premium smartphone market, where pricier devices and AI features can deliver better margins for chipmakers. First 2nm Flagship, Beating Rival by a Week MediaTek said the Dimensity 9600 Pro is its first mobile processor built on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's cutting-edge 2nm process. The company also released the Dimensity 9600M, built on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's 3nm process, targeting the broader flagship phone market. The first smartphones powered by both chips will hit the market soon; the company has previously supplied Chinese phone makers including Xiaomi, OPPO, and vivo. According to MediaTek's official press release, the Dimensity 9600 Pro adopts a 2+3+3 all-big-core CPU architecture (with 2 C2-Ultra super cores clocked up to 4.55GHz), features 34.5MB of cache, and is the first to support LPDDR6 memory and UFS 5.0 flash storage; single-core performance is up 17% over the previous generation, multi-core performance is up 15%, and multi-core power consumption at peak performance is reduced by 61%. AI is the focus of this chip generation: the 9600 Pro integrates a dual-NPU architecture, with a "Super Performance NPU" capable of supporting on-device running of mixture-of-experts (MoE) models with up to 30 billion parameters; a "Super Efficiency NPU" works with the sensor hub to reduce always-on sensing power consumption by 40%. The 9600 Pro includes a dedicated AI processor (NPU), which MediaTek says can handle more complex generative AI applications on the phone itselfthe NPU is 51% faster than the previous generation at processing user prompts (i.e., the prefill stage before the AI model begins generating a response). The launch timing is a carefully orchestrated positioning battle. Qualcomm will hold its Snapdragon Summit next week (September 22-24), unveiling the Snapdragon 8 Elite Gen 6, also built on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's second-generation 2nm process (N2P)marking the second consecutive year MediaTek has launched its flagship chip ahead of Qualcomm. Leaked benchmarks show the Dimensity 9600 Pro scoring roughly 4,100-4,300 on Geekbench 6 single-core, approaching the level of Apple Inc.'s in-house chips (unofficially confirmed). According to supply chain leaks, the vivo X500 series (launching in late September) and the OPPO Find X10 series will be among the first to carry Dimensity 9600 series chips. Share Ambitions Amid a Price Hike Wave Pricing is the other side of this race. MediaTek Senior Corporate Vice President Hsu Ching-chuan said the company is working with phone makers to limit the impact of rising component costs on consumersthe AI boom is straining the supply chain. But he also sees opportunity: as advanced hardware and new AI features make higher pricing increasingly common, "as the overall market moves toward higher price bands, I believe we still have room to gain share in the flagship segment." The backdrop is the continued upward march of flagship phone prices: Apple Inc.'s newly launched foldable iPhone last week carries a U.S. retail price of up to $3,199 for its highest storage version. And as previously reported, MediaTek has said it will "strategically adjust pricing and capacity" to maintain marginsanalysts warn that flagship chip prices will climb significantly as wafer complexity and memory prices both rise. MediaTek's confidence has a basis: its market capitalization surpassed Qualcomm's earlier this year. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's "Winner-Takes-All" Moment Regardless of whether MediaTek or Qualcomm wins this round, the manufacturing winner is already decided. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's 2nm process (N2) entered mass production simultaneously in Hsinchu and Kaohsiung in the fourth quarter of 2025, with yields exceeding 80%, far above industry expectations; the second-generation 2nm N2P process will enter mass production in the second half of this year, cutting power consumption by another 5%-10% or boosting performance by 5%-10% over N2. Industry data shows that the 2nm process delivers roughly 10%-15% more performance at the same power consumption versus 3nm, and reduces power consumption by roughly 25%-30% at the same performance. Scarce Capacity At the end of 2025, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's 2nm monthly capacity was only about 15,000-20,000 wafers, and is expected to expand to 80,000-100,000 wafers by the end of 2026; to meet demand, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR plans to build 10 2nm fabs across Taiwan and the United States. Apple Inc. is reported to have locked up more than half of initial 2nm capacityone of the practical considerations behind Qualcomm and MediaTek turning to N2P. Morgan Stanley predicts that in 2026, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's N2 process will hold a 90%-95% market share at the 2nm node. Apple Inc.'s A20 Pro uses the first-generation N2 process, while the Dimensity 9600 Pro jumps straight to N2Psome third-party analyses suggest it has overtaken Apple Inc.'s chips using N2 in the same period in terms of performance. MediaTek's Bigger Game: From Phones to Data Centers Beyond phone chips, MediaTek's AI ambitions are accelerating. One of the world's largest smartphone chip design companies has expanded its AI business into data centers and custom chip productstech companies are pouring billions of dollars into AI infrastructure. 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. Capital moves are equally notable: last month MediaTek raised $3.9 billion through a convertible bond issuance, with NVIDIA Corporation contributing $3.5 billion to subscribe, and Alphabet Inc. Class C parent Alphabetits long-term partner in AI infrastructurealso participating in the offering. On August 31, NVIDIA Corporation and MediaTek also jointly announced a deepened long-term partnership to build an AI computing platform from edge to cloud. At a moment when ASML just confirmed a week ago that lithography equipment orders are booked through 2027, and Bernstein is still debating the sustainability of AI spending, the arrival of MediaTek's 2nm chip provides yet another tangible footnote to the "AI hardware arms race"at least on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's production lines, no one is planning to hit the brakes.