A rumor suggests that Nvidia and MediaTek are working on a system-on-a-chip to capture part of the growing dedicated gaming handheld market.

The rise of handheld gaming devices like theSteam Deckand Nintendo Switch has offered a new opportunity for chip makers. At the moment, AMD dominates in this area, providing the chips for a huge range of handheld devices, including the Steam Deck,Asus ROG Ally, and the manyAyaneo handhelds.

As spotted byVideocardz, the rumor comes from analyst Dan Nystedt, who claims that Nvidia is working with MediaTek on several projects, including collaborating on an ARM-based processor for PCs and a SoC for handheld devices.

Leaker XpeaGPU also chimed in, claiming that Nvidia CEOJenson Huanghas become frustrated by the slow pace at which Nintendo adopts and releases new Nvidia chips in its devices like the Switch and upcomingSwitch 2. Since this is all rumor, just remember to take this with a hefty pinch of salt.

Yep and Mediatek is also working on gaming handled SoC with Nvidia GPU as Jensen is frustrated by Nintendo and he sees a good market potential.PS: its different than the new NV semi-custom div that tries to reenter the console market (some CN clients are already interested)https://t.co/sBuYVLJILc

XpeaGPU claims that Nvidia hopes to court Chinese-based companies producing new gaming handhelds. These companies could potentially launch new products every few months, and allow Nvidia to gain a foothold in the handheld market.

The SoC is expected to be an ARM-based chip, which would usually make it more suited to Android or possibly Linux-based operating systems. However, the Qualcomm Snapdragon X series has already made strides towards optimizingWindows 11for ARM processors. Not to forget that Nvidia has extensive experience with producing drivers for Windows.

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We could yet see Nvidia-powered handhelds enter the market and offer up some hardware diversity as Nvidia continues to challenge AMD.

Rebecca Hills-Duty was a Tech Writer on Dexerto’s UK Team, specializing in PC components, VR, AMD, Nvidia and Intel. She has previously written for UploadVR and The Escapist, hosts a weekly show on RadioSEGA and has an obsession with retro gaming.