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On-Device Neural Processing Units Reshape Smartphone Hardware Margins

 ·  1 min read

Smartphone original equipment manufacturers are confronting elevated bill-of-materials (BOM) expenses as next-generation mobile processors incorporate expanded neural processing unit (NPU) silicon real estate.

BOM Inflation and Margins
Silicon area dedicated to tensor execution has increased die costs by an estimated 12% to 15%. To absorb these margins, OEMs are restructuring mid-tier device portfolios and limiting flagship feature rollouts strictly to premium SKUs.