OpenAI teams up with MEDIATEK and Qualcomm to create a smartphone, with Foxconn as the exclusive manufacturer. Mass production will begin in 2028.

According to Counterpoint Research, Tianfeng International Securities analyst Ming-Chi Kuo stated that a supply chain survey indicates OpenAI is collaborating with MediaTek and Qualcomm to develop a smartphone processor, with Luxshare Precision as the exclusive system-level joint design and manufacturing partner, expected to start mass production in 2028. The specifications and suppliers are expected to be finalized by the end of 2026 or the first quarter of 2027.

Ming-Chi Kuo believes that the core logic of OpenAI entering the smartphone market is: only by controlling both the operating system and hardware can a complete AI agent service be provided; smartphones are the only devices that can instantly obtain the user's complete state, which is crucial for AI agent real-time inference. The user's goal is not to use a bunch of apps but to accomplish tasks and meet needs through the phone, fundamentally changing the definition of a smartphone.

In terms of business model, OpenAI may bundle subscription services with hardware and co-create an AI agent app ecosystem with developers. The key considerations in smartphone processor design are power consumption, memory hierarchy management, and running small models locally, with complex tasks offloaded to cloud AI. Ming-Chi Kuo referenced MediaTek's TPU Zebrafish chip developed for Google, stating that the revenue contribution of a single Zebrafish is roughly equivalent to 30 to 40 AI agent smartphone processors. The global high-end smartphone market ships approximately 300 to 400 million units annually, and the replacement cycle could become a growth driver for MediaTek and Qualcomm. For Luxshare Precision, which struggles to surpass Foxconn's assembly position in the Apple supply chain, this project presents an opportunity to take the lead in the next generation of smartphones.