MediaTek will challenge Qualcomm later this year with the Dimensity 9400, but even if it obtains orders from various Android phone makers, the Taiwanese firm’s biggest win will be securing Samsung as a client for future orders. According to the latest rumor, the Korean giant is being appeased with an exclusive discount, where MediaTek’s SoCs can be adopted in upcoming smartphone models.
MediaTek chipsets might only be adopted on Samsung’s budget-focused smartphones; no flagship launches are in sight due to an agreement with Qualcomm
Qualcomm has sufficient breathing room for now because a rumor shared by tipster Revegnus reveals that MediaTek is offering Samsung a special discount to use its chipsets in its budget-friendly smartphones. Given that the Korean manufacturer is the largest Android phone maker in the world and was recently dethroned by Apple as the biggest smartphone brand in the world, securing orders from Samsung will go a long way in increasing MediaTek’s market share and providing opportunities for future deals.
For now, it does not appear that Samsung is interested in adopting MediaTek’s upcoming Dimensity 9400, which is said to be mass produced on TSMC’s second-generation 3nm process, just like the Snapdragon 8 Gen 4. For one thing, Samsung already signed an agreement with Qualcomm to use its next-generation chipsets for next year’s Galaxy S25 family, but those days might be numbered for the San Diego firm.
There are rumors that Samsung’s budget lineup may expand its use of MediaTek processors, as MediaTek has recently offered special pricing exclusively for Samsung.
— Revegnus (@Tech_Reve) February 4, 2024
With the Snapdragon 8 Gen 3 estimated to cost $200 per SoC and the Snapdragon 8 Gen 4 said to be more expensive than its predecessor, Samsung might prioritize its margins rather than give future orders to Qualcomm. Fortunately, Samsung has plenty of choice, with MediaTek being one alternative and its own Exynos range being another. Assuming MediaTek offers discounts that make its Dimensity 9400 cheaper than what it costs Samsung to fabricate its own SoCs, we could see a future partnership materialize.
For now, though, MediaTek will be pursuing a deal in baby steps, giving a price cut on low-end silicon rather than making a massive jump and pitching an offer for its Dimensity 9300 and Dimensity 9400.
News Source: Revegnus