Intel’s first processor using rival TSMC’s technology, the Lunar Lake, has officially launched, intensifying the competition with AMD. According to a recent report by TechNews, third-party testing has confirmed Intel’s claims: Lunar Lake is indeed the most energy-efficient x86 processor to date, outperforming Qualcomm’s Snapdragon X and even rivaling Apple’s M3, reminiscent of Apple’s groundbreaking M1 launch.

TechNews attributes this success not only to Intel’s redesign of power supply, frequency regulation, and packaging but also to the advanced TSMC N3B process.

Recently, Intel announced that in order to reduce costs and better prepare for its in-house 18A process, it has decided to abandon the introduction of the 20A process. As a result, the Arrow Lake chip launching this month will also use TSMC’s process. TechNews raised the question in their article: “With Intel’s new platforms expected to rely on TSMC’s process at least until 2026, will AMD face significant challenges?”

Can AMD’s Zen 5 architecture turn the tide?

TechNews noted that AMD’s current advantage over Intel rests heavily on using TSMC’s process. However, AMD is not alone in benefiting from TSMC’s power efficiency. Across the board, chips produced with TSMC technology have demonstrated superior energy efficiency, delivering high performance without consuming excessive power. But, with the efficiency gains from advanced nodes like M4 or A18 nearing their limits, chipmakers will need to adopt more aggressive power and frequency strategies to push performance further.

Lunar Lake’s impressive energy efficiency highlights both TSMC’s process advantage and Intel’s enduring design prowess. This should serve as a warning for AMD, which plans a major push into the laptop market in 2025. With the launch of Strix Point and Hawk Point this year, AMD aims to release five new platforms next year, targeting the mid-to-high-end laptop market. However, reviews of Strix Point already show that, while performance has improved, energy efficiency remains stagnant—a problem that could persist with future Zen 5-based products.

This opens a window of opportunity for Arrow Lake, which is now powered by TSMC’s process. If Arrow Lake can offer higher peak performance than Raptor Lake Refresh or Meteor Lake while maintaining strong energy efficiency—and with better OEM partnerships—AMD’s hard-earned foothold in the mid-to-high-end market may once again be overshadowed by Intel.

Facing competition shifts due to process changes is nothing new for AMD. As mentioned in the TechNews report, when NVIDIA launched the RTX 30 series on Samsung’s 8LPU (8nm) process, early issues with leakage and high power consumption gave AMD’s RX 6000 series GPUs, known for their superior performance and energy efficiency, a competitive edge. The high-end 6800 and 6900 models were even able to compete with NVIDIA’s RTX 3080. However, once NVIDIA returned to TSMC for the RTX 40 series, AMD struggled to keep up and eventually abandoned its high-end GPU plans, shifting focus to niche markets.

TechNews concludes that while next year may see the lowest degree of processor process diversity—since almost everyone is using TSMC—it will also be a critical year to evaluate the true design strengths of each semiconductor company. With AMD’s Zen 5 already on the table, all eyes are now on Intel’s Arrow Lake to see what surprises it brings to the market with TSMC’s technology.

(Photo credit: AMD)

MediaTek, a leading IC design company, has unveiled its flagship 5G Agentic AI processor, the Dimensity 9400, positioning it as an Arm PC-class processor. The chip features a second-generation all-big-core design, combining Arm v9.2 CPU architecture with advanced GPU and NPU technologies, promising high performance and ultra-energy efficiency. According to a report from TechNews, products powered by the Dimensity 9400 are expected to hit the market soon, setting the stage for a showdown with Apple’s A18 and Qualcomm’s Snapdragon 8 Gen 4.

The Dimensity 9400 employs a second-generation all-big-core CPU, featuring a single Arm Cortex-X925 core clocked at 3.62GHz, three Cortex-X4 cores, and four Cortex-A720 performance cores. Compared to its predecessor, the Dimensity 9300, the new chip offers a 35% boost in single-core performance and a 28% improvement in multi-core performance. Additionally, the Dimensity 9400 is built on TSMC’s advanced 3nm (N3E) process, resulting in a 40% reduction in power consumption, providing users with significantly longer battery life.

The processor also integrates MediaTek’s 8th-gen AI processor, the NPU 890, which supports on-device LoRA training and high-definition image generation, while offering developers access to Agentic AI capabilities. This results in a substantial improvement in AI performance and efficiency compared to the previous generation, with an 80% increase in prompt performance for large language models (LLM) and a 35% reduction in power consumption.

TechNews also highlighted that while the Dimensity 9400 emphasizes its all-big-core design, the configuration differs slightly from the previous Dimensity 9300, which used four Cortex-X4 cores and four Cortex-A720 cores. MediaTek explained that the new design was made for energy efficiency, as users don’t always need to run applications at the highest clock speeds of all big cores. Whether the performance lives up to MediaTek’s claims will be determined once the actual products hit the market.

Even before its launch, the Dimensity 9400 generated significant market interest. Reports suggest that vivo’s X200 series and OPPO’s Find X8 will be among the first devices to feature the new processor. Additionally, Samsung is considering replacing its in-house Exynos processor with the Dimensity 9400 in its upcoming Galaxy S25 series, set for release in 2025.

(Photo credit: MediaTek)

In addition to its latest smartphone chipset Dimensity 9400, MediaTek seems to be working on another killer product. According to the reports by Chinese media outlet IT Home and Tom’s Hardware, the Taiwanese IC design giant is teaming up with NVIDIA on an AI processor, which is expected to be manufactured with 3nm and scheduled to be taped out later this month.

According to the reports, the chip is said to enter mass production by late 2025.

According to Tom’s Hardware, building on insights from Qualcomm’s Snapdragon X Elite launch, there’s room for a new Windows-on-Arm competitor from a mobile-focused company like MediaTek. As Qualcomm’s Snapdragon X Elite is comparatively weak in its graphic performance, this creates a market for NVIDIA and MediaTek to step in.

MediaTek’s upcoming AI processor is reportedly to be paired with NVIDIA’s GPU, while major laptop companies led by Dell, HP, Lenovo and Asus are said to be potential customers for the product, the reports note. According to a previous report by the Economic Daily News, the processor is rumored to be priced around USD 300.

It is also worth noting that MediaTek, which is known for its leading position on mobile chipsets, typically partners with AMD for hardware, with AMD utilizing MediaTek’s Wi-Fi 6E solutions in its mobile platforms, according to Tom’s Hardware. There have also been longstanding rumors of a 5G notebook collaboration between the two companies, the report says.

Therefore, it would be somewhat interesting if MediaTek does turn to NVIDIA, AMD’s biggest rival, for collaboration. However, as NVIDIA currently holds the throne of AI processors, it would not be surprising that MediaTek teams up with the U.S. AI giant when it chooses to expand its foothold to the AI PC sector.

It would not be the first time the two companies team up, though. In March, MediaTek announced at NVIDIA GTC four new automotive SoCs within its Dimensity Auto Cockpit portfolio, offering powerful AI in-cabin experiences for the next generation of intelligent vehicles.

For more details, it integrates an NVIDIA RTX GPU, which supports ray tracing for realistic visuals and lighting effects in games, plus AI upscaling and frame generation for fast, fluid action, according to MediaTek’s press release.

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• [News] MediaTek Ventures into AI Accelerators, Aiming to Release Dimensity 9400 in October
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(Photo credit:)

To turn adversity around, Intel launched its latest AI accelerator, Gaudi 3, in late September. However, a report by the Economic Daily News indicates that the struggling giant has significantly slashed the chip’s shipment targets by over 30% for next year, which may severely impact orders for its Taiwanese supply chain.

According to the report, the move could be attributed to the Intel’s internal strategy adjustments and the fluctuation of customer demand, which prompts it to cut orders on Taiwanese companies such as TSMC, ASE Technology, and ASIC firm Alchip.

According to industrial sources cited by the report, Intel originally projected to ship 300K to 350K units of Gaudi 3 in 2025. However, the target has now been revised to 200K to 250K units, marking a reduction of more than 30%.

According to the report, after acquiring Israel-based AI chip company Habana Labs in 2019, Intel seems to be relatively conservative about their co-development of the next-gen AI accelerators. Intel’s cautious attitude is evident from its recent moves, such as expediting the conclusion of previous projects like Gaudi 2, as well as lowering the shipment target for Gaudi 3 next year.

Intel declined to comment on the matter, the report notes.

According to industrial sources cited by the report, the adjustment will pose limited impact to TSMC, which manufactures Intel’s Gaudi 3 with its 5nm node. While the demand for the foundry leader’s advanced nodes remains robust, other customers are expected to quickly fill the gap left by Intel.

In terms of IC packaging and testing services provider ASE and its subsidiary SPIL, as they also have a diversified client portfolio, with major tech companies placing orders, the capacity can be swiftly reallocated to minimize the impact, the report suggests.

Nevertheless, for those with smaller scales and a higher client concentration, the impact may be more significant. Taiwanese ASIC firm Alchip, which provides ASIC design services for Intel’s Gaudi 2 and Gaudi 3, therefore, may be more vulnerable to Intel’s potential shipment reduction, according to the report.

Unimicron, which serves as the primary supplier of substrates for Intel’s chips, may also be impacted by the fluctuation of Intel’s orders, the report notes. However, when asked about the potential impact, the company reaffirms its optimistic outlook regarding the second half of 2024, as it expects the demand for AI accelerators and optical modules to be stronger than the first half.

Currently, NVIDIA still holds the throne in the global AI chip market, with rivals such as AMD and Intel eagerly trying to catch up.

Intel’s latest effort, Gaudi 3, boasts 64 Tensor processor cores (TPCs) and eight matrix multiplication engines (MMEs) to accelerate deep neural network computations, and is specifically optimized for large-scale generative AI, according to its press release. It even claims to offer double the performance at the same cost compared to NVIDIA’s H100, the report says.

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(Photo credit: Intel)

The competition between Samsung and TSMC has intensified not only in securing international IC design clients but also in the field of South Korean IC design companies. According to a report by ZDNet Korea, major South Korean AI semiconductor fabless companies, which previously used Samsung’s foundry facilities, are now diversifying their manufacturing by using TSMC’s fabs for new chip mass production.

Industry sources cited by ZDNet Korea reveal that FuriosaAI initially used Samsung’s 14nm process for its first-generation chip, “Warboy,” but switched to TSMC’s 5nm process for its second-generation chip, “Renegade.” Notably, Renegade became the first chip in South Korea’s AI semiconductor sector to utilize 2.5D packaging technology with CoWoS and HBM3 memory. FuriosaAI is also planning to use TSMC’s 5nm process for its next-generation chip, “RenegadeS,” set to launch in the fourth quarter.

Similarly, DeepX, after using Samsung’s foundry process, adopted TSMC’s technology for its latest chip development this year. The company’s “DX-V3” system-on-chip (SoC) is being developed using TSMC’s 12nm process, with a target to release samples later this year. DeepX’s earlier chips, the “DX-M1” AI accelerator and “DX-H1” AI server accelerator, were produced using Samsung’s 5nm process, while the “DX-V1” AI SoC solution was made with Samsung’s 28nm process. The “DX-M1” entered mass production last month. ZDNet Korea also reports that DeepX is currently discussing with Samsung the development of next-generation chips using processes more advanced than 5nm.

Another South Korean IC design company, Moblinet, is utilizing both Samsung and TSMC’s foundry services. Its first-generation chip, “Eris,” was manufactured using Samsung’s 14nm process and began mass production in March this year. The second-generation chip, “Regulus,” is being produced using TSMC’s 12nm process and is expected to launch next year after completing testing.

ZDNet Korea also cites industry experts who emphasize that Samsung’s foundry services need to not only focus on attracting large clients but also improve services for smaller fabless companies. Similar to how TSMC grew by nurturing partnerships with small fabless firms, Samsung should bolster its process technology and develop an ecosystem for IP and fabless companies.

According to TrendForce data, TSMC maintained a global foundry market share of 62.3% in the second quarter of this year, while Samsung held an 11.5% share.

Meanwhile, in the race for major international client orders, WCCFTECH reports that Qualcomm is pursuing a dual-sourcing strategy for its Snapdragon 8 Gen 5 chip, partnering with both TSMC and Samsung. Qualcomm has previously attempted this approach, but Samsung’s inconsistent yields thwarted the plan. Qualcomm is now reportedly considering TSMC’s 3nm ‘N3P’ technology for the high-performance variant of the Snapdragon 8 Gen 5, while Samsung’s SF2, also known as 2nm GAA, is expected to be used for a lower-end version.

(Photo credit: TSMC)