According to reports, NVIDIA’s collaboration with MediaTek is deepening, with both companies planning to launch an AI PC chip in the second half of 2025 and also developing an AI smartphone chip.
It is reported that the development of the AI PC chip has entered a crucial stage, having entered the tape-out phase in October 2024, with mass production expected in the second half of 2025. This chip will combine NVIDIA’s strong capabilities in graphics processing with MediaTek’s expertise in custom chip design, using TSMC’s advanced 3nm process technology and ARM architecture. The industry has high expectations for its performance. PC manufacturers such as Lenovo, Dell, HP, and ASUS have already planned to adopt this chip.
In addition to the PC market, the collaboration between NVIDIA and MediaTek will extend into the smartphone field, developing a mobile system-on-chip (SoC). Unfortunately, specific details about this chip have not been disclosed yet.
1. NVIDIA, returning to mobile chips
This is not NVIDIA’s first venture into mobile chips. As early as 2008, NVIDIA recognized the market potential of mobile internet and launched a cross-border product, Tegra.
Tegra is a system-on-chip (SoC) that integrates an ARM architecture processor and NVIDIA’s Geforce GPU, along with other functions, primarily targeting small devices. Compared to Intel’s x86 architecture, which starts from PCs, Tegra, based on ARM architecture, is more like a chip designed specifically for smartphones. It cannot run operating systems like Windows XP designed for x86 PCs, but it is more suitable for lightweight ARM architecture operating systems used on smartphones.
The first two Tegra products, the Tegra 600 and Tegra 650, were based on the ARM 11 architecture. At the CES 2010 exhibition, NVIDIA launched the second-generation Tegra platform based on ARM cores, using the latest 40nm technology with lower power consumption compared to previous products. It was the world’s first mobile dual-core CPU. Many mobile devices adopted this processor, such as the LG Optimus 2X, Motorola Atrix 4G, Xoom, Acer A500, ASUS Eee Pad TF101, and Dell Streak 10 Pro.
At the CES 2014 opening, NVIDIA released the Tegra K1, the latest version of the Tegra series. This processor featured NVIDIA’s Kepler architecture GPU, with 192 CUDA cores and five computational cores (four large and one small). It fully supported DirectX 11 and OpenGL 4.4, with its graphics performance expected to rival that of gaming consoles. Data showed that the Tegra K1’s GPU performance far exceeded that of Apple’s A7 and Qualcomm’s Snapdragon 800.
However, under the combined pressure from Qualcomm and Samsung, the Tegra series was quickly sidelined. The main reason was its weakness in baseband technology. NVIDIA had little expertise in baseband technology, and after acquiring Icera, the integration took too long to launch high-quality integrated baseband solutions. Additionally, to pursue higher performance, the Tegra 4 adopted a four-core A15 architecture, leading to serious power consumption and heat generation issues, which did not meet the battery life demands of mobile devices like smartphones. As a result, its market acceptance was low.
Although the Tegra chips gradually withdrew from the market, they provided NVIDIA with valuable experience in the mobile chip field. Given that Samsung’s Exynos chips have underperformed, Qualcomm and MediaTek have become the only major competitors in the Android camp. The market urgently needs a high-performance mobile chip, and with NVIDIA’s strength in graphics processing and AI technology, coupled with MediaTek’s custom chip design capabilities, they are expected to reshape the competitive landscape of the mobile chip industry.
2. MediaTek, mobile chips are selling like hotcakes
Recently, MediaTek released its financial report for the fourth quarter of 2024 and the full year. The report shows that with strong sales of its flagship SoC chip, the Dimensity 9400 processor, and the support of other business segments, MediaTek’s consolidated revenue for the fourth quarter reached NT$138.04 billion, a 4.7% increase from the third quarter and a 6.5% year-over-year growth.
In terms of full-year performance, MediaTek performed excellently. In 2024, MediaTek’s consolidated revenue reached NT$530.59 billion, a year-over-year increase of 22.4%. The net profit attributable to the parent company was NT$106.39 billion, a 38.2% year-over-year increase. Earnings per share were NT$66.92, the third-highest in history.
MediaTek CEO Rick Tsai stated that the revenue growth in Q4 2024 was mainly due to the strong sales of OPPO and Vivo flagship smartphones featuring the Dimensity 9400 chip, such as the Vivo X200 series and OPPO Find X8 series. The full-year revenue growth in 2024 was driven by a doubling of revenue from flagship chips, including the Dimensity 9300/9400. The revenue from Dimensity flagship chips increased by over 100% in 2024, surpassing the previously expected 70% growth, contributing US$2 billion in revenue.
In October 2024, MediaTek launched the next-generation flagship 5G Agentic AI chip, the Dimensity 9400, which uses TSMC’s second-generation 3nm process. It offers a 35% improvement in single-core performance, a 28% improvement in multi-core performance, a 40% reduction in power consumption compared to the previous generation, and enhanced AI performance, ray tracing, and GPU capabilities. The first smartphones featuring this chip are expected to be released in the fourth quarter of 2024.
According to MediaTek’s forecast, smartphone shipments in 2025 are expected to grow by more than 70%, with 5G penetration increasing to over 60%. MediaTek expects its Q1 2025 revenue to be between NT$140.8 billion and NT$151.8 billion, with a quarter-on-quarter growth of 2% to 10%, and a year-on-year growth of 6% to 14%, likely achieving the best performance in the past ten quarters.
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