OpenAI Mobile Supply Chain: Ming-Chi Kuo Predicts MediaTek Will Dominate Processors, Mass Production Expected as Early as 2027

Analysts point out that OpenAI is accelerating the development of AI phones, with mass production expected as early as the first half of 2027. MediaTek is expected to secure exclusive orders for customized chips.

Hong Kong Tianfeng International Securities analyst Guo Mingqiang only announced on April 27 that OpenAI, the parent company of ChatGPT, is collaborating with MediaTek and Qualcomm to develop a smartphone processor, with Luxshare Precision serving as the exclusive system design and manufacturing partner, with a projected mass production date as early as 2028. This sparked a reimagining in the market: OpenAI’s hardware strategy may not just be about creating a device equipped with ChatGPT, but about redefining smartphones with an “AI Agent Phone.”

• Related news: Rumors that OpenAI is launching a phone? Guo Mingqiang highlights MediaTek, Qualcomm, and Luxshare as key suppliers

By May 5, Guo Mingqiang further added that the latest industry survey describes a more aggressive development progress for OpenAI’s first AI Agent phone. He indicated that OpenAI might be accelerating the development of its first AI Agent phone, with the goal of mass production as early as the first half of 2027. This suggests that the latest schedule could be about six months to a year earlier than the previously mentioned “mass production by 2028” on April 27.

Guo Mingqiang believes that the reasons for OpenAI speeding up phone development may include benefiting the narrative of an IPO at the end of the year and the accelerating competition in AI Agent phones. In other words, if OpenAI can clearly demonstrate its hardware strategy before the IPO, it can not only strengthen its growth story around “AI operating systems” and “AI personal agent portals,” but also show the capital markets that it is not just a cloud-based model company, but one with the potential to enter the next-generation consumer computing platform.

From joint development with Qualcomm and MediaTek to MediaTek potentially securing exclusive processor orders

In the April 27 version, Guo Mingqiang mentioned that OpenAI is collaborating with MediaTek and Qualcomm to develop smartphone processors, with the supply chain still showing a competitive or co-developing landscape.

However, the May 5 update shows a clearer shift: Guo Mingqiang pointed out that MediaTek is now more likely to secure exclusive processor orders for OpenAI’s AI Agent phones. The device is expected to use a customized version based on Dimensity 9600, manufactured by TSMC’s N2P process in the second half of 2026.

This shift is quite significant. If MediaTek ultimately wins the processor order exclusively, it would mean that MediaTek is not just a participant in the OpenAI phone supply chain, but could become the core chip platform provider for the first-generation AI Agent phones. For MediaTek, which has long been chasing Qualcomm in the high-end mobile chip market, making the OpenAI phone a new benchmark for AI devices could be a major reassessment of its brand and technological standing.

Especially since the focus of the OpenAI phone will not just be traditional CPUs, GPUs, or communication specs, but how to support long-term understanding of contexts, task processing, memory management, and cloud model scheduling. This greatly increases the importance of customized processors.

Key specifications: ISP, dual NPU, LPDDR6, UFS 5.0, and security architecture

In the May 5 update, Guo Mingqiang also provided more specific specifications. He indicated that the customized chip for the OpenAI AI Agent phone will enhance the ISP’s high dynamic range output, which is beneficial for real-world visual perception, making it a key specification.

This also aligns with the core logic of the AI Agent phone. If the phone is to serve as an entry point for AI agents, it cannot rely solely on text input but must understand the user’s environment, images, scenes, and real-time states. Cameras and sensors are no longer just tools for taking photos but vital data sources for AI agents to understand the real world. Therefore, high dynamic range output from the ISP may be designed to ensure stable visual perception in complex lighting, indoor-outdoor switching, and moving scenes.

Other key specifications include a dual NPU architecture, LPDDR6 paired with UFS 5.0, and security features like pKVM with inline hashing.

Total shipments of about 30 million units in 2027 and 2028

Guo Mingqiang also provided a clearer shipment forecast. If development proceeds smoothly, the OpenAI AI Agent phone is expected to ship approximately 30 million units combined in 2027 and 2028.

While this number still falls significantly short of iPhone annual shipments, for a completely new brand and a new type of AI phone, it is already a very ambitious target. If OpenAI can mass produce in the first half of 2027, it suggests that the device is not just an experimental hardware or niche developer device, but an attempt to enter the mainstream consumer mobile market.

This also makes the April 27 supply chain assessment more meaningful for investment. Guo Mingqiang pointed out that if OpenAI initially targets the global high-end smartphone market, which has an annual shipment scale of about 300 to 400 million units; now, if the first-generation product can reach about 30 million units in 2027 to 2028, it indicates that OpenAI at least hopes to make the AI Agent phone a scalable new product category, rather than just a concept demo for AI hardware.

• This article is reprinted with permission from 《Chain News》
• Original title: 《OpenAI Phone Supply Chain Update: MediaTek Exclusive Processor? Production Schedule Accelerated to First Half of 2027》
• Original author: Neo