MediaTek opted to build the Dimensity 9400 SoC using TSMC’s 3nm N3E technology for the very first time. Earlier, it used to produce the chipset using a 4nm N4P node technology. One might wonder why the transition. The chipset built on new 3nm tech ensures greater performance, lower power consumption, and smoothly carries out generative AI tasks. However, this decision has led MediaTek’s partners to increase the price of their Dimensity 9400-powered smartphones substantially.
Smartphones using MediaTek Dimensity 9400 SoC are likely to see a substantial price hike
According to a recent report by United Daily News, the transition to new tech by MediaTek has forced its smartphone maker partners like Vivo to keep a handy profit margin by increasing the price of the latest offering X200 series. The Vivo X200 series has launched with a starting price of RMB 4299 (∼ $605).
When we compare this price with the RMB 3999 (∼ $563) starting price of the predecessor Vivo X100 series, it’s a price hike of around 7.5%. Interestingly, that number comes as a surprise since the market didn’t expect Vivo to spike the price of its latest offering by that much. The market insiders believe that the hike in price is nothing but the result of using MediaTek’s Dimensity 9400 SoC.
An increase in the cost of SoC’s production using the new 3nm tech is responsible
Here, it’s worth noting that previous reports have suggested that the price of the latest chipset is $155. That price is reportedly 20% higher than that of the Dimensity 9300 (about $130) used in the Vivo X100 series.
So, it’s safe to say that using TSMC’s 3nm tech has been expensive for MediaTek. As a result, it is selling the chipset to phone manufacturers at a higher rate. This has eventually compelled smartphone makers to increase the price of phones powered by Dimensity 9400 SoC.
It should be noted that the latest report doesn’t talk about the cost of mass production of the MediaTek Dimensity 9400. However, the publication speculates that the new Redmi K80 series by Xiaomi could also see a price hike upon launch due to similar reasons. Moreover, we expect other manufacturers using the latest MediaTek chipset in their Android phones to follow the same trend.
