MediaTek, NVIDIA Challenge Intel and AMD in AI PC Chips

MediaTek and NVIDIA are gearing up to enter the AI PC market, as their joint development of an AI PC processor based on Arm architecture has reportedly reached the final design stage. Mass production is expected to begin in the second half of next year using TSMC's 3nm process. This collaboration aims to expand AI applications and challenge the dominance of Intel and AMD's x86 processors in the AI PC market, positioning MediaTek to compete directly with Qualcomm.

While MediaTek declined to comment on these reports yesterday, its stock price dropped by NT$10, closing at NT$1,290.

Industry insiders highlight that Qualcomm has already gained an early advantage in the Arm-based AI PC processor space with its Snapdragon X series, which has attracted significant attention from major brands. Historically, MediaTek's focus in the PC sector has been on Chromebooks, but this new partnership with NVIDIA marks a major shift toward AI PCs. With mass production on the horizon, MediaTek's PC product line is set to expand beyond Chromebooks and into AI PC applications, positioning it as a key competitor to Qualcomm.

According to sources, the MediaTek-NVIDIA AI PC processor will combine MediaTek's CPU technology with NVIDIA's advanced GPU capabilities, making it highly anticipated within the industry. Major PC brands such as Lenovo, HP, Dell, and ASUS are expected to adopt this new processor once it launches next year. This would introduce a new player into the existing x86 processor ecosystem, with MediaTek and NVIDIA joining Qualcomm as challengers in the Arm-based AI PC processor market.

While MediaTek's main focus remains on smartphone chips, this upcoming AI PC processor could help MediaTek significantly expand its presence in the mainstream PC market. NVIDIA, a leader in discrete graphics cards for PCs, is also expected to benefit from this partnership by expanding its influence in the AI PC sector.

Currently, MediaTek's product offerings in the computing sector include the Kompanio series, which supports Chromebook applications, with partners like ASUS, Lenovo, HP, and Acer. MediaTek and NVIDIA's collaboration in the AI PC market further strengthens their partnership, which deepened in September when NVIDIA's G-SYNC technology was integrated into MediaTek's display chips. This integration is expected to enhance the performance of gaming monitors by improving image quality, motion clarity, and reducing latency. The simplified production process and lower costs resulting from eliminating the need for a standalone G-SYNC module also highlight the efficiency of this partnership.

In addition to the AI PC market, MediaTek and NVIDIA are working together in the automotive industry, co-developing intelligent cockpit solutions for software-defined vehicles. By combining MediaTek's system-on-chip technology with NVIDIA's GPU and AI software, the two companies aim to provide next-generation smart vehicle solutions to the global automotive industry.