The competition between Taiwan’s MediaTek and the U.S. company Qualcomm is intensifying in the premium application processor (AP) market, often referred to as the “brain of smartphones.”
MediaTek’s new product, the Dimensity 9400, is being praised for its performance, which is comparable to Qualcomm’s dominant offerings. Furthermore, MediaTek is expected to see a significant revenue boost as its customer base, particularly Chinese smartphone manufacturers, is experiencing an increase in sales.
Meanwhile, Samsung Electronics, whose Exynos 2500 processor was originally slated for its premium Galaxy S25 series, now appears to be focusing on supplying APs for its budget models due to uncertainty around the Exynos 2500′s inclusion in high-end devices.
On Oct. 22, Taiwan’s media outlets, including the Commercial Times, reported that Vivo has increased the price of its latest smartphone by over 7%, attributing this to a rise in the price of MediaTek’s APs. Media reports suggest that sales of MediaTek’s flagship APs could jump by more than 50% compared to last year. Vivo’s latest X200 series, unveiled on Oct. 14, comes equipped with MediaTek’s Dimensity 9400 processor.
According to technology market analyst firm Canalys, Vivo ranked first in India’s smartphone market during the third quarter, capturing a 19% market share. During this period, the company shipped 9.1 million smartphones to India, reflecting a 26% increase from the previous year.
In addition to its strong performance in India, Vivo continues to lead the smartphone market in China. MediaTek’s Dimensity 9400, which powers Vivo’s latest models, is also set to be featured in other upcoming devices, such as Oppo’s Find X8 and X8 Pro, further expanding its presence in the market.
The Dimensity 9400 is receiving positive reviews for its performance, standing up well against Qualcomm’s traditionally dominant products in the premium AP market. Performance tests conducted by GSM Arena, an IT media outlet, showed that MediaTek’s Dimensity 9400 is 30% faster in computing speed and consumes 40% less power compared to Qualcomm’s Snapdragon 8 Gen 3. Many believe the upcoming Snapdragon 8 Gen 4 will show little difference in performance compared to the Dimensity 9400.
However, MediaTek’s APs are priced 20–30% lower than Qualcomm’s Snapdragon 8 Gen 4, giving them a competitive edge in the market.
According to research by Taiwan’s TF International Securities, MediaTek’s APs are priced around $155, while the Snapdragon 8 Gen 4 is expected to be priced between $180 and $190. MediaTek aims to leverage its improved performance and competitive pricing to expand its supply to Chinese smartphone manufacturers, with the goal of catching up to Qualcomm in the premium AP market.
Meanwhile, Samsung’s System LSI division, which designs the Exynos series, is reportedly focusing on supplying APs for budget models such as the Galaxy S25 FE.
The latest Exynos 2500 AP has faced issues with design flaws and low production yields in Samsung’s semiconductor foundries, casting doubt on whether it will be used in premium models like the Galaxy S25 and the upcoming Galaxy Fold and Flip series. There are also reports that Samsung’s mobile division, in an effort to reduce costs, is considering using MediaTek’s Dimensity 9400 for some models in the Galaxy S25 series.
Professor Lee Jong-hwan from Sangmyung University “As Chinese smartphone makers, which have maintained strong ties with MediaTek, continue to roll out smartphones equipped with premium APs, TSMC’s stable 3nm manufacturing process has helped boost their performance.”
“In contrast, Samsung’s semiconductor foundries, which hastily adopted the gate-all-around (GAA) process for 3nm production, are facing yield issues, causing setbacks for Samsung’s System LSI division in the AP business,” he added.
