While MediaTek has been gunning for Qualcomm's core business in the higher-end market, Qualcomm looks to be playing a similar game, attacking MediaTek's territory in the low-end market.
The Taiwan chipmaker has been known for supplying mid- and low-tier mobile devices, but it's pushing to go higher end.
At Computex, the chipmaker announces a new system on chip for smart home devices and a new developer platform for wearables.
Though designed for mid-range handsets, the Mediatek MT6595 flaunts eight CPU cores, 4G LTE, plus many more mobile bells and whistles.
The company's technology, dubbed the Octa-Core 6592, will be the first true eight-core mobile processor to hit the market.
Mediatek is going after Samsung, Nvidia, and Qualcomm with a quad-core chip for high-end smartphones.
Cristiano Amon, co-president of Qualcomm's chips segment, said in an interview that the rapid adoption of 4G LTE technology should benefit the company's growth in China.
The company is trying to bring the cost of smartphones down to as little as $50.
Chipmaker posts sharply higher earnings for its June quarter thanks to strong chipset sales, but shares fall after hours as company warns of problems in China.
China's GooPhone is back with an iPhone 6 clone and companion watch, available at least weeks before the real things are expected from Apple.