The reasoning behind the joint venture is apparently AMD wanting to have a better presence in the entry-level mobile market. For high-end products, the company already has active collaborations with Samsung with the RDNA-powered Exynos chips as well as with Qualcomm.
MediaTek, which became the largest smartphone chip vendor in 2020, also owns patented technologies on 5G connectivity and wireless transmission, which AMD is also looking into to create new mobile system-on-a-chip products in the future for notebooks and laptops.
Rival company Intel has similarly set its sights on adding 5G and mobile connectivity features to its processors for the notebook market.
Neither AMD nor MediaTek have confirmed the joint venture, so as always take this report with a grain of salt. The two companies have previously worked together to create the RZ608, a Wi-Fi 6E module.