NVIDIA, a powerhouse in the technology sector, is making significant strides by delving back into the mobile chip marketThis decision comes amid a dynamic partnership with MediaTek, a company well-known for its advanced semiconductor technology.

According to fresh reports, NVIDIA and MediaTek are not only teaming up to introduce an AI PC chip in late 2025 but are simultaneously working on an AI smartphone chipThe collaboration aims at harnessing NVIDIA's stronghold in graphic processing combined with MediaTek's expertise in customized chip design.

The AI PC chip's development has reached pivotal stages, already entering the tape-out phase by October 2024, and is projected to hit mass production in the latter half of 2025. This innovative chip is set to utilize TSMC's cutting-edge 3nm fabrication technology, built on the ARM architecture, amplifying performance anticipations across the industry.

Prominent PC manufacturers such as Lenovo, Dell, HP, and Asus have their sights set on this groundbreaking chip, suggesting a swift adoption in the upcoming marketThese companies are known for pushing the envelope in technology, eager to maximize the capabilities of new hardware.

Beyond the PC domain, NVIDIA's partnership with MediaTek is also reaching into the smartphone territoryThey're aiming to develop System-on-Chip (SoC) solutions tailored specifically for mobile devices, an area that promises exciting innovations, even as specific details about the smartphone chip remain under wraps for now.

Interestingly, this isn't NVIDIA's first foray into the mobile chip arena

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Back in 2008, the company recognized the burgeoning potential of mobile internet and unveiled a cross-genre product—TegraThis initiative marked NVIDIA's ambition to dominated a sphere previously traditional for other players.

Tegra was designed as a system-on-chip (SoC) integrating ARM architecture processors with NVIDIA's GeForce GPUThis design uniquely positioned Tegra chips for compact devices, contrasting sharply with Intel's focus on the x86 architecture, typically favored for PCsTégras particularly resonated with mobile operating systems that thrived on ARM's light-footed design.

The inaugural Tegra models, Tegra 600 and Tegra 650, launched based on the ARM11 architecture, showcased NVIDIA's capability to adaptNotably, during CES 2010, the company introduced its next-gen Tegra platform, cutting-edge with a 40-nanometer process technologyThis advancement led to the emergence of the first mobile dual-core CPU, which found its way into devices like LG's Optimus 2X, Motorola's Atrix 4G, and others.

In 2014, NVIDIA rolled out the Tegra K1, a powerful processor leveraging NVIDIA’s Kepler architecture GPU featuring 192 CUDA cores, promising performance rivaling that of gaming consolesThe device hinged on its architecture for a perceptibly robust graphical performance, far outpacing competitors like Apple's A7 and Qualcomm's Snapdragon 800 at the timeHowever, despite such promising features, Tegra faced intense pressures from rivals like Qualcomm and Samsung.

The setbacks largely stemmed from a lack of focus on modem technology, a crucial element for smartphonesNVIDIA's acquisition of Icera aimed to bolster this domain but was marred by integration delays, leaving a competitive void

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Additionally, Tegra 4, prioritized high performance with its quad-core A15 architecture, inadvertently exacerbated energy consumption and heat issues—factors that alienated potential mobile users.

Although Tegra chips gradually exited the spotlight, they offered valuable insights into the mobile chip landscapeWith competitors faltering, presented an opportune moment for NVIDIA to re-enter this sector alongside MediaTek, significantly with the potential to reshape the competitive dynamics.

On the other side of the spectrum, MediaTek has been thriving in the mobile chip market, recently announcing impressive financial results for the fourth quarter of 2024 as well as for the full yearTheir flagship SoC, the Dimensity 9400, has been a major contributor to their success, echoing a robust demand in the realm of mobile technology.

Reports indicate that MediaTek's consolidated revenue for the fourth quarter reached NT$138 billion, representing a 4.7% increase from the preceding quarter and a 6.5% annual growthFurthermore, the company's consolidated revenue for the entirety of 2024 hit NT$530.6 billion, a remarkable 22.4% year-on-year increase, with net profit soaring by 38.2%.

MediaTek's CEO, Rick Tsai, has highlighted that this impressive revenue boost comes largely from the sale of flagship smartphones powered by the Dimensity 9400 chipBrands like OPPO and Vivo have been at the forefront of this boom, particularly through popular models such as the Vivo X200 series and the OPPO Find X8 series, proving that innovation and performance continue to resonate strongly with consumers.

In October 2024, MediaTek also unveiled its groundbreaking 5G Agentic AI chip, the Dimensity 9400, which utilizes the second-generation 3nm process from TSMC, showcasing significant advancements—including a 35% increase in single-core performance, a 28% boost in multi-core performance, and a substantial 40% reduction in power consumption compared to its predecessor.

Looking ahead, MediaTek anticipates a formidable increase in smartphone shipments by over 70% in 2025, coupled with a projected 60% penetration rate for 5G technologies

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