MediaTek Leads Smartphone Processor Market with Dimensity 9400

According to a recent report from market research firm Canalys, MediaTek maintained its leadership in the smartphone processor market for the third quarter of 2024. With a market share of 38%, MediaTek's smartphone processors were featured in 119.3 million devices during the quarter, continuing its dominance for the 15th consecutive quarter.

The top contributors to MediaTek's smartphone chip shipments in Q3 2024 were Xiaomi, Samsung, and OPPO, which accounted for 23%, 21%, and 16%, respectively, of the total shipments.

MediaTek's shift in smartphone SoC (System on Chip) design, starting with the Dimensity 9300 chip, has significantly shaped the market. The ongoing market share leadership highlights the company's strong position. The Dimensity 9300's innovative "all big-core" architecture set a new industry benchmark, gaining widespread market recognition for both the chip and devices featuring it.

In October 2024, MediaTek unveiled the Dimensity 9400, which builds on the success of its predecessor. Manufactured using TSMC's second-generation 3nm process, the Dimensity 9400 features a powerful "all big-core" CPU architecture with one Cortex-X925 super-large core at 3.62GHz, three Cortex-X4 super-large cores, and four Cortex-A720 large cores. This new configuration not only boosts performance but also significantly extends battery life in consumer devices, advancing the industry into the second generation of all big-core architecture. In terms of GPU, the Dimensity 9400 integrates a 12-core Arm Immortalis-G925 GPU, offering a 41% increase in peak performance, a 44% reduction in power consumption, and a 40% improvement in ray tracing performance.

In its financial report, MediaTek announced a consolidated revenue of NT$131.81 billion for Q3, marking a 3.6% quarterly growth and a 19.7% year-on-year increase. The company's gross margin stood at 48.8%, unchanged from the previous quarter and up 1.4% compared to the same period last year.

During the earnings call, MediaTek expressed confidence that the revenue boost from the Dimensity 9400 would offset weaker seasonal demand in the consumer electronics sector. The company expects continued growth in its smartphone business through Q4 2024.

The Dimensity 9400 has gained significant market and customer recognition, with more devices featuring the chip compared to its predecessor, including flagship smartphones from vivo, OPPO, and Redmi. Vivo, for example, reported a 200% increase in sales of its X200 series compared to the previous generation, setting a new sales record. This strong performance has led MediaTek to revise its forecast, expecting a 70% increase in revenue from flagship smartphone chips, surpassing the previous estimate of over 50%.

Industry analysts further predict that the Dimensity 9400's sales momentum will continue to rise, with major Chinese smartphone brands like OPPO, vivo, and Xiaomi placing significant orders.