MediaTek’s annual Executive Summit in Laguna Niguel, California, was almost as noteworthy for what was not discussed as what was. Despite the announcement of a partnership with Meta to develop custom silicon for the company’s next-gen AR/VR glasses, a new value-oriented Dimensity 8300 chipset that will bookend its premium 9300 offering in the smartphone space, there was no public discussion on a topic that was on minds of most of the analysts in attendance: will MediaTek get into the PC business?
It’s not a trivial question. While the overall PC business is not growing at the feverish pace it did during the salad days of Covid, the global laptop portion of the PC market is expected to modestly grow approximately at a 3% CAGR from $127.6B in 2023 to $147.9B in 2028.
With Qualcomm’s recently announced Snapdragon X Elite chipset making noise in the market that should enable compelling Arm-based Windows laptops to enjoy comparable performance and battery life benefits that Apple Silicon-based Macs have, not to mention the embedded AI virtues of these new ingredients, MediaTek might be foolish not to look at the market soberly.
Qualcomm’s new cutting-edge Snapdragon processors and 5G modems power nearly all high-end mobile devices in the smartphone market. Apple devices utilize their own processors, but most still use Qualcomm 5G modems). Apple’s attempt to design its own 5G modem has been an embarrassing comedy of errors over the past few years, but that’s a topic for a different article.
Qualcomm products are used in high-end devices sold in the United States and a few other countries by businesses like Samsung Electronics, which manufactures its own processors and modems. The mid-range and lower-end segments of the industry have witnessed greater diversity, with processors from MediaTek and Samsung capturing a significant portion of the market.
Meanwhile, Qualcomm has endeavored to cater to this segment by offering low-performing Snapdragon chips. However, the mid-range and lower-end mobile device markets are fiercely competitive and price-sensitive, with numerous OEMS vying for market share.
MediaTek’s legacy positioning and technology chops
Until recently, MediaTek has been generally regarded as a less expensive substitute supplier for lower to mid-tier Qualcomm smartphones and a cost-conscious substitute for lower-end devices, especially in China. Although this has been the case for a while, MediaTek has recently made a solid effort to win over more manufacturers of high-end devices. It has been positioning itself as a high-end substitute for Qualcomm, whose near-monopoly has driven up the cost of high-end handsets.
Enter the Dimensity 9300
The Dimensity 9300, the newest CPU in MediaTek’s Dimensity lineup, was just unveiled, and it’s no performance slouch. With an 8-core CPU for high performance, a 12-core Arm Immortalis GPU for high-end gaming support, an advanced ISP for video and audio processing that includes noise cancellation, intelligent picture editing/processing, and 4K HDR video, and an AI-capable APU for LLM and GenAI support, it boasts a wide range of advanced processing capabilities. Additionally, it includes a security processor subsystem to support necessary security aspects of the operating system and boot function. Moreover, it has next-generation WiFi 7 capabilities and an advanced 5G modem (release 16); nevertheless, the 5G modem is housed on a different SoC chip. It is also based on TSMC’s cutting-edge 4nm process technology, which is comparable to Qualcomm’s Snapdragon Gen 3 processors but one step behind some of the more recent 3nm process chips (Apple’s most recent chips, for example, use TSMC’s 3nm process node).
Even though independent detailed performance benchmarks are unavailable, the most recent Qualcomm Snapdragon chips are probably more potent than MediaTek’s chips. However, even if this is the case, MediaTek now has a significant advantage over its competitors in powering high-end smartphones and other mobile devices.
Due to its Taiwanese provenance as opposed to Qualcomm’s American origin, MediaTek may have a competitive advantage due to the present semiconductor dynamic between the United States and China. And since Arm is fighting Qualcomm right now, causing ambiguity on how this would impact OEM device makers down the road, some may view having a competing MediaTek choice as insurance against unfavorable outcomes.
The PC market beckons for MediaTek
Over the past several years, MediaTek has repeatedly proven itself a worthy competitor to Qualcomm in the smartphone space. It would be hard to argue that the company doesn’t have the technological prowess to offer a compelling alternative to Qualcomm’s Snapdragon X Elite. However, its Dimensity 9300 offering can’t be used “as is” without modifications. However, the engineering and development work would be the (relatively) easy part for MediaTek.
Let’s face it: Arm versions of Windows signify the future for PC users amid the market shift away from X86 architectures. Arm processors offer energy efficiency, facilitating longer battery life and enhanced portability. The architecture’s inherent design aligns with the growing demand for sleek, fanless laptops and innovative form factors. Arm’s success in mobile devices underscores its potential for delivering robust performance while minimizing power consumption. As software developers increasingly optimize for Arm, users can expect a broader range of compatible applications. This transition not only anticipates the evolving needs of users but also signifies a pivotal moment in the evolution of PC technology.
And while Microsoft, in the past, has treated Windows versions for Arm solutions in an almost “science project” like way, there are signs that the Redmond-based company is taking Arm more seriously than it has in the past. There are reports that Microsoft is sharing builds of Windows with OEMs that are dramatically more robust from an app and peripheral compatibility standpoint than prior Arm versions of Windows. That will go a long way in convincing IT managers and CIOs that Arm-based Windows PCs are ready for prime time from an enterprise deployment standpoint.
These Arm-based offerings from Qualcomm and MediaTek also have significant integrated AI functionality that will aid Microsoft’s mission to make its Co-Pilot technology a core element of new versions of Windows 11 and beyond. That, in turn, has the potential to cause a massive upgrade cycle from X86-based PCs.
In summary, MediaTek’s rise to prominence as a genuine rival of Qualcomm in the premium device market implies that OEMs of smartphones will have more options, even at the PC level, when it comes to choosing the core processor that best suits the ever-changing demands of the market in terms of price and performance as well as product uniqueness. Customers and markets always benefit when they have more choices, so a MediaTek play in the PC space, and Qualcomm’s already announced solutions could help legitimize the fledgling Arm-based Windows category.
While MediaTek would not address the topic specifically at its recent Executive Summit, I was impressed with Rick Tsai, MediaTek’s CEO, who took me aside after his keynote presentation to candidly state the company is always looking for new markets to utilize its solutions and that the PC market is by no means is off the table. Indeed, the business economics and the rationalization of finite engineering, development, software, and qualification resources have to be justified by MediaTek’s senior executives.
Still, I get the sense that the company recognizes the opportunity as it would allow them to become a “complete portfolio” organization to those OEMs with both PC and smartphone ambitions. For now, it’s wait and see, but I sense where the wind might be blowing.
Mark Vena is the CEO and Principal Analyst at SmartTech Research based in Silicon Valley. As a technology industry veteran for over 25 years, Mark covers many consumer tech topics, including PCs, smartphones, smart home, connected health, security, PC and console gaming, and streaming entertainment solutions. Mark has held senior marketing and business leadership positions at Compaq, Dell, Alienware, Synaptics, Sling Media and Neato Robotics. Mark has appeared on CNBC, NBC News, ABC News, Business Today, The Discovery Channel and other media outlets. Mark’s analysis and commentary have appeared on Forbes.com and other well-known business news and research sites. His comments about the consumer tech space have repeatedly appeared in The Wall Street Journal, The New York Times, USA Today, TechNewsWorld and other news publications.
SmartTech Research, like all research and tech industry analyst firms, provides or has provided paid services to technology companies. These services include research, analysis, advising, consulting, benchmarking, acquisition or speaking sponsorships. Companies mentioned in this article may have utilized these services.
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