MediaTek Launches Improved AI Processor To Compete With Qualcomm

MediaTek Inc. is launching a mobile processor more capable of handling agentic AI tasks on devices, positioning to better compete with Qualcomm Inc. 

The new Dimensity 9500 will provide users with better summaries of calls and meetings, improved output from AI models and superior 4K photos, the Taiwanese company said in a statement. The chip is made using an advanced 3-nanometer process by Taiwan Semiconductor Manufacturing Co., according to MediaTek, and handsets carrying the new chip will become available in the fourth quarter. 

Xiaomi Corp. is set to launch its latest handset range powered by Qualcomm’s newest Snapdragon processor later this week, and the Chinese smartphone maker is aiming to benchmark its upcoming devices against Apple Inc.’s iPhone 17. 

MediaTek’s processor, meanwhile, is expected to give Xiaomi’s rivals including Vivo a boost in the premium segment. 

But the global smartphone market will only grow 1%-2% in 2025, MediaTek executives told reporters last week. While Chinese consumers did buy more phones than expected in the first half due to a state subsidy program, overall demand in China has not really risen significantly this year, they said. 

Separately, the Taiwanese company is preparing to place chip orders for automotive and more sensitive applications with TSMC’s Arizona plant as some US customers have security concerns, according to the executives.