In the past, MediaTek’s chipsets have typically been viewed as the more affordable alternative to Qualcomm’s chips. This is because back then, MediaTek’s chips weren’t as powerful. So, it made sense that the company would price them lower. However, MediaTek’s newer chipsets are catching up to Qualcomm in performance, but despite that, the recently launched Dimensity 9500 might actually be cheaper than the Snapdragon 8 Elite Gen 5.
Dimensity 9500 50% cheaper than Snapdragon
In a post on X, Abhishek Yadav revealed the estimated OEM cost of MediaTek’s chipsets. Assuming these numbers are accurate, the Dimensity 9500 costs around $180-200 to produce, which is 50% cheaper than the Snapdragon 8 Elite Gen 5, which has been estimated to cost as much as $280.
What’s even more interesting is that both these chipsets are built using TSMC’s 3nm N3P process. Obviously the design of both chipsets are different, but considering they’re both built on the 3nm process, the difference in cost is quite striking. However, we should point out that it’s impossible to know for sure how much these chips cost.Â
This is because the cost could be determined by MediaTek’s relationship with TSMC. Also, depending on the terms set by MediaTek and its partners, not everyone might be able to get the chip at its lowest price. The same can be said for Qualcomm. A good example would be Samsung. The company typically features the use of an exclusive overclocked Snapdragon chip for its flagship phones.
The rising cost of Snapdragon
That being said, it’s also worth pointing out that Qualcomm’s prices have been going up. We keep hearing reports year after year that Qualcomm could raise the prices of its chips. This is to be expected, given the use of TSMC’s advanced manufacturing process, plus all the R&D involved.Â
However, when we look at the price between the Dimensity 9500 versus the Snapdragon 8 Elite Gen 5, MediaTek is starting to look more attractive. We’re not sure if phone makers are ready to ditch Qualcomm for MediaTek entirely. But if MediaTek can maintain the price gap while closing the performance gap, it might be a no-brainer for some.
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