TLDR: Artificial intelligence is rapidly transitioning from a premium, cloud-centric feature to a fundamental, on-device capability across all consumer electronics. MediaTek, a key player in the semiconductor industry, is driving this transformation by integrating advanced AI into smartphones, PCs, and IoT devices, emphasizing personalization, efficiency, and cost reduction. The shift towards edge AI is expected to revolutionize user experiences within the next two years, making devices more intelligent and responsive.
The consumer electronics industry is undergoing a profound transformation as artificial intelligence evolves from a specialized, cloud-dependent function into a ubiquitous, on-device capability. Industry leaders like MediaTek are at the vanguard of this shift, predicting that within the next two years, the term ‘smart’ may become redundant for devices like smartphones, TVs, and speakers, as built-in intelligence becomes the standard. Future device competition will hinge on the sophistication and depth of their integrated AI.
MediaTek’s President and COO, Joe Chen, highlighted at the MWC conference in March 2025 that AI is set to play a pivotal role in consumer electronics, particularly in the highly competitive smartphone market. Chen forecasts a significant overhaul of user experience, driven by advancements in AI inference capabilities and reduced computational costs, which are bringing AI closer to the end-user device. While initial applications may be scenario-specific, the emergence of more ‘all-powerful’ AI-driven functionalities in smartphones and tablets is anticipated within two years.
David Ku, Co-COO, Corporate Executive Vice President & CFO at MediaTek, echoed this sentiment in February 2025, noting that a major trend is the adoption of AI models through edge processing on devices. This approach not only accelerates processing times but also reduces costs by enabling applications to run natively rather than relying on cloud solutions. The shift towards on-device AI also promises enhanced privacy and more personalized experiences, as data can be processed locally without constant transfers to the cloud. For instance, Artificial Analysis estimates cloud inferencing on OpenAI to cost $4.38 per 1 million tokens, whereas on-device processing is essentially free.
MediaTek is actively supporting leading AI models such as Google’s Gemini and Meta’s Llama, and is collaborating with Nvidia on developing AI PC chips utilizing Arm architecture. This collaboration aims to address potential compatibility concerns, including gaming performance, by leveraging Nvidia’s GPU expertise alongside MediaTek’s technological prowess. The company’s mobile AP business is thriving, with its market share in China’s flagship smartphone segment projected to grow from over 30% in 2023 to approximately 40% in 2024, driven by strong demand and government subsidies. The new Dimensity 9500 chip is seeing better client adoption compared to its predecessor, the Dimensity 9400, further solidifying MediaTek’s position.
Beyond smartphones, MediaTek is extending its AI innovations to other sectors. The company unveiled two 6G innovations at MWC 2025, focusing on integrating communication with cloud-based computational resources for devices with limited processing power, and developing technologies for the 6G FR3 frequency band. However, Chen predicts that 6G commercial availability is still some years away, likely not before 2030. MediaTek is also making strides in IoT, with its Genio 720 & 520 platforms bringing generative AI capabilities to these devices, and its 5G GenAI Gateway winning a Best Choice Award at Computex 2025.
The broader industry trend, as highlighted by Qualcomm’s Senior Vice President Durga Malladi in January 2025, indicates that AI models are continuously becoming smaller and more effective. This allows for complex AI to run on everyday devices, transforming them into true digital personal assistants. Malladi emphasized that 2025 will be a pivotal year for mobile technology, with AI becoming an essential standard across all mobile tiers. This includes the integration of AI into smart glasses for immersive, hands-free experiences like language translation and personalized recommendations.
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MediaTek’s Associate Vice President, PD Rajput, further elaborated in October 2025 on the rising importance of ‘edge AI’ – AI processing directly on the device. He noted that real-world applications of Small Language Models (SLMs) and on-premise Private AI are fueling the demand for more powerful edge solutions. MediaTek’s advancements in Neural Processing Units (NPUs), picture engines, and GPUs, supported by robust SDKs and partnerships, are enabling on-device AI across various platforms, including Chromebooks. Features like image generation, smart grouping, and ‘help me read/write’ functionalities are making Chromebooks more intelligent and capable. The collaboration with NVIDIA on projects like the DGX Spark, described as the ‘world’s smallest AI supercomputer’ powered by the NVIDIA GB10 Grace Blackwell Superchip, underscores the trend towards high-performance, on-device AI compute. This market shift is also creating significant opportunities for custom silicon, with MediaTek targeting diverse sectors from consumer devices to data centers with tailored chip solutions. The economics of edge AI, particularly with the increasing helpfulness of SLMs, make it a compelling future for AI integration.
