MediaTek and Qualcomm’s new wave of 5G flagship smartphone chip competition will begin in the fourth quarter. MediaTek is launching the “Dimensity 9400” to directly compete with Qualcomm’s “Snapdragon 8 Gen 4.” According to a report from Economic Daily News, both major manufacturers are using TSMC’s 3nm process to produce their new chips, which have recently entered the production phase.

Alongside this, NVIDIA, AMD, and Apple are also actively seeking TSMC’s 3nm capacity, resulting in TSMC securing another order and seeing a surge in its advanced process business.

It is understood that the queue for TSMC’s 3nm process capacity has extended all the way to 2026. To ensure the smooth launch of the Dimensity 9400, MediaTek has already started production at TSMC to secure sufficient supply capacity. The 3nm process is currently the most advanced node technology. Previously, TSMC mentioned that its 3nm process capacity will triple this year, but it still remains in short supply.

At the beginning of this year, MediaTek CEO Rick Tsai announced that the Dimensity 9400 would be unveiled in the fourth quarter. He stated that its performance would far exceed that of the current flagship chip, the Dimensity 9300, and that it would represent another significant peak in their technology.

MediaTek’s current flagship Dimensity 9300/9300+ chips are built using TSMC’s 4nm process. Reportedly, it is expected that with the support of TSMC’s 3nm process, the performance of the Dimensity 9400 will be further enhanced, making it a powerful tool for MediaTek to capture the market.

Although Qualcomm has not yet announced the launch schedule and details of its next-generation flagship chip, the Snapdragon 8 Gen 4, the same report believed that this chip will also be produced using TSMC’s 3nm process and will be launched in the fourth quarter, with upgraded performance.

Ming-Chi Kuo, renowned Apple analyst, previously reported that the Snapdragon 8 Gen 4 will be produced using TSMC’s N3E process, and its price may be 25% to 30% higher than the current Snapdragon 8 Gen 3, with each chip priced at $220 to $240.

In the second half of the year, numerous AI products will be launched in the consumer market. Per industry sources cited in an earlier report from Commercial Times, besides Qualcomm’s Snapdragon 8 Gen 4 and MediaTek’s Dimensity 9400,  Apple’s A18 and M4 series are also said to be built using TSMC’s N3 family. Moreover, Google’s Tensor G5 may compete in the market as well.

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• [News] IC Design Companies Adopting TSMC’s 3nm Process Trigger Cost-driven Price Hikes
• [News] Major Clients Reportedly Fully Allocate TSMC’s Production Capacity Until 2026, 3nm Process in High Demand
  

(Photo credit: Qualcomm)

While NVIDIA is likely to face accusations from the French antitrust regulators, the Non-NVIDIA Alliance like the UALink (Ultra Accelerator Link) Alliance and the UXL Foundation are reportedly launching a counterattack, significantly increasing their efforts in developing specialized ASICs.

According to a report from Commercial Times, relevant semiconductor intellectual property (IP) is expected to be widely adopted. The sources cited by the report point out that Taiwanese manufacturers, benefiting from their leading position in wafer foundry and comprehensive ASIC and IP layout, are poised to capitalize on the rise of the Non-NVIDIA Alliance.

The report further cites sources, indicating that major Taiwanese ASIC manufacturers such as Global Unichip, Faraday Technology, and Progate Group Corporation (PGC), along with silicon IP companies M31 Technology Corporation, eMemory, and the Egis Technology Group, are actively expanding in this field.

In order to challenge NVIDIA’s dominance in the market, UALink (Ultra Accelerator Link) Alliance, led by tech giants such Intel and AMD, was formed in May. The alliance aims to establish a new standard for AI accelerator links, aiming to challenge NVIDIA’s  NVLink.

Furthermore, the UXL Foundation’s Open Source Software Project, supported by tech giants Qualcomm, Google, and Intel, is said to be looking to rival NVIDIA’s CUDA software. By providing alternative software solutions, it aims to diminsh NVIDIA’s dominance in the AI field.

Semiconductor industry sources cited in the same report also note that CSPs are accelerating the development of their own chips, with Taiwanese manufacturers actively entering the market.

Although Broadcom and Marvell currently offer diversified design services, Taiwanese manufacturers have an advantage due to the tightly-knit semiconductor supply chain. This enables complete solutions for both chip manufacturing and packaging within Taiwan, giving them a strategic edge over competitors by being close to both the market and factories, thereby enhancing their position in the ASIC sector.

Global Unichip and PGC leverage TSMC as a strong ally. Reportedly, Global Unichip holds AI-related ASIC orders from Microsoft and is gradually finalizing collaborations with major South Korean companies, with business operations expected to improve in the second half of the year.

On the other hand, Faraday Technology closely collaborates with Intel, developing SoCs using Intel’s A18 process. Meanwhile, industry sources cited by the report suggest that Intel’s Gaudi series AI chips might seek collaboration opportunities beyond just working with Alchip.

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• [News] Novatek, a Major Driver IC Manufacturer, Reportedly Eyes Entry into ASIC and Silicon IP Battlefields

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According to a report from South Korean media outlet The Financial News, MediaTek, Taiwan’s largest smartphone IC designer, has the opportunity to enter Samsung’s Galaxy S25 supply chain as one of the main chip suppliers for the next generation flagship smartphone. Samsung’s S series smartphones have traditionally adopted a “dual-track” strategy, using both in-house Exynos chips and Qualcomm’s Snapdragon. MediaTek, on the other hand, has declined to comment on this matter.

Samsung’s Galaxy Tab S10 is said to be equipped with MediaTek’s Dimensity 9300+ application processor, marking the first instance of MediaTek’s AP being adopted by Samsung’s flagship tablet, according to a report by the Korean media outlet The Chosun Daily.

The latest report by the Financial News further highlights that MediaTek’s APs have primarily been used in Samsung’s mid-to-low-end smartphones. The decision to use MediaTek’s AP in the Galaxy Tab S10 series, instead of Qualcomm’s or Samsung’s own APs, is a significant shift for Samsung.

The report indicates that Samsung’s Galaxy S25 smartphones will not only use Qualcomm’s Snapdragon 8 Gen 4 chips and Samsung’s own Exynos 2500 chips but may also use MediaTek’s Dimensity chips in some regions. It is speculated that the chip in discussion is the yet-to-be-announced Dimensity 9400. If true, the S25 could be available in versions with Exynos 2500, Snapdragon 8 Gen 4, and Dimensity 9400 chips.

The report cites sources, suggesting that this rumor is not entirely without merit, as Qualcomm’s Snapdragon 8 Gen 4 chip is expected to be 30% more expensive than its predecessor. Currently, the Snapdragon 8 Gen 3 chip is rumored to cost around $190-200 per unit, while the 8 Gen 4 could be priced at $260. Samsung’s consideration of incorporating MediaTek chips, or at least using this possibility as leverage in price negotiations with Qualcomm, is plausible.

Qualcomm has been releasing new flagship mobile chips annually and designing custom versions for Samsung’s high-end phones. For instance, the current Samsung S24 series, including the S24 Ultra and some regional versions of the S24 Plus and S24, use Qualcomm’s tailored Snapdragon 8 Gen 3 chip, designed specifically for Galaxy phones and featuring advanced AI capabilities.

It is worth noting that there is a close collaborative relationship between Samsung and Qualcomm. Some of Qualcomm’s chip manufacturing orders are handled by Samsung’s foundry division, while some of Samsung’s mobile chips use Qualcomm’s main processors. If MediaTek succeeds in integrating its Dimensity 9400 into Samsung’s smartphone supply chain, it would be a significant milestone for MediaTek.

The report from The Chosun Daily also highlighted that from Samsung’s perspective, choosing Dimensity to reduce costs and diversify the supply chain is a sensible decision.

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• [News] Samsung Adopts Dimensity 9300+ Instead of Snapdragon, the First Time for Its Flagship Tablet to Feature MediaTek AP
• [News] MediaTek Announces 4nm Dimensity 7300 Series Chips, Supporting Foldable Devices

(Photo credit: MediaTek)

Rumors have been circulating regarding Samsung’s 3nm yield recently. The latest market speculation on June 25^th alleged that Samsung’s foundry plant encountered a defect impacting 2,500 lots in the 3nm second-generation process, reportedly leading to a loss of 1 trillion won (USD 720 million), according to the latest report by the Chosun Daily.

On June 26^th, the semiconductor giant denied the rumors of a major defect in the production of semiconductor wafers at its foundry division in South Korea. Market speculations emerged earlier, suggesting that all the affected wafers, which equal to 2,500 lots, had to be discarded, the report noted. The volume corresponds to roughly 65,000 12-inch equivalent wafers per month.

According to the Chosun Daily, Samsung claimed that the rumor of “discarding them (the affected wafers) all” circulating in the stock market are unfounded. The current status of the products from the affected production line is still under evaluation, the report said.

Citing industry insiders familiar with the matter, the Chosun Daily noted that the reported figures might be exaggerated, pointing out that Samsung’s 3nm production capacity is less than 60,000 wafers per month. Furthermore, there are numerous inspection processes in place throughout the production line, indicating that such a large-scale defect may be improbable.

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• [News] Samsung’s 3nm Yield Reportedly Below 20%, Struggling for Mass Production

(Photo credit: Samsung)

As China keeps reducing its reliance on the global semiconductor supply chain with strong support from the authority, two major smartphone manufacturers reportedly claim to have already taped out their own 4nm mobile processors. According to the reports by Liberty Times and Commercial Times, Xiaomi and Unisoc, by using foreign IP cores from ARM and IMG, have successfully taped out domestic 4nm chips.

According to the latest data from TrendForce, Xiaomi (including Xiaomi, Redmi, and Poco) has moved past last year’s high inventory issues, achieving a total production of 41.1 million units in the first quarter and ranking third globally in market share, only after Samsung and Apple. Oppo, Transsion and Vivo are the other three Chinese smartphone brands having made it to the top six regarding global shipments.

Shanghai-based fabless chip firm Unisoc, on the other hand, is specialized in areas including 2G/3G/4G/5G, Wi-Fi, Bluetooth, TV FM, satellite communications and other related technologies, according to its website.

Citing comments from Chinese tech blogger “Oneline Technology,” the reports point out that Xiaomi’s self-developed chip has made a significant leap forward, while the performance of its 4nm chip is similar to that of Huawei’s Kirin 9000s, and is expected to be seen this year. Huawei’s Kirin 9000s is reportedly manufactured by SMIC’s 7nm.

Citing another Chinese blogger, “Fixed Focus Digital,” the reports mention that Unisoc’s 4nm chip has already taped out, achieving performance levels comparable to Qualcomm’s Snapdragon 888.

Regarding the timeline for Chinese domestically produced smartphone SoCs to reach 4nm, the reports, citing industry insiders, state that it is more likely to happen in 2026. For now, MediaTek and Qualcomm still dominate Chinese’s smartphone chip market.

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• Q1 Smartphone Production Increases Due to Low Base Last Year, Expected to Decline 5–10% in Q2, Says TrendForce

(Photo credit: Unisoc)