DIGITIMES Asia Tech Forum 2025: Qualcomm and MediaTek take smartphone rivalry to the cloud in AI chips

NEW YORK, Sept. 25, 2025 /PRNewswire/ -- With global smartphone sales leveling off, Qualcomm and MediaTek are taking their long-running rivalry into the fast-growing cloud AI ASIC market. DIGITIMES Research estimates MediaTek controlled 37% of the smartphone application processor market in 2024, ahead of Qualcomm at 27%. Together, the two suppliers accounted for more than 60% of shipments. With handset growth expected to remain stuck in the low single digits, both companies are turning to cloud computing chips as a new source of expansion.

Cloud strategies unveiled at COMPUTEX

Qualcomm and MediaTek outlined new strategies for cloud AI chips and confirmed plans to join Nvidia's NVLink Fusion consortium, signaling their intent to take on incumbents in high-performance computing. The moves, announced at COMPUTEX 2025, underscore how chipmakers are racing to secure an edge in AI infrastructure, where expertise in HPC SoC design, SerDes interconnects, and advanced manufacturing nodes is critical to compete.

MediaTek focuses on speed and partnerships

DIGITIMES Research analyst Joyce Chen said MediaTek's competitive edge lies in speed. The company has relied on Arm reference designs and TSMC's advanced nodes, building up mass-production know-how in smartphones and Chromebooks. It has also joined Nvidia's DGX Spark GB10 project and partnered with Google on TPU development, accelerating its push into cloud AI ASICs. MediaTek has demonstrated 224G SerDes technology, signaling its in-house interconnect strength and giving it a first-mover advantage through alliances with Nvidia and Google.

Qualcomm emphasizes depth and integration

Qualcomm is taking a different path, focusing on deeper integration. Since acquiring Nuvia in 2021, the company has built its Oryon CPU into a cornerstone of its proprietary IP portfolio. Its 2025 acquisition of Alphawave filled gaps in SerDes and high-speed interconnects, creating a more complete technology stack. Qualcomm also maintains dual foundry options with TSMC and Samsung, enhancing production flexibility. Its Cloud AI 100 and Ultra AI accelerator cards are already deployed in edge inference servers, and it is preparing chips designed for large language model training and inference.

Rivalry that could reshape AI ASIC competition

Chen said both companies now have the capacity to compete in the cloud AI ASIC market. MediaTek's speed gives it an early edge, while Qualcomm has reinforced its technology base through acquisitions. The outcome, Chen noted, will hinge on how well each can manage costs, meet rising demand for computing power, secure advanced manufacturing capacity, and forge partnerships with cloud providers. What is certain, she added, is that Qualcomm and MediaTek are carrying their rivalry beyond smartphones and into cloud AI chips — a contest that could help define the next era of competition in artificial intelligence hardware.

SOURCE DIGITIMES ASIA