arXiv:2605.03680v1 Announce Type: new Abstract: While deep-learning-based image restoration has achieved unprecedented fidelity, deployment on mobile Neural Processing Units (NPUs) remains bottlenecked by operator incompatibility and memory-access overhead. We propose an NPU-aware hardware-algorithm co-design approach for real-world image denoising on mobile NPUs. Our approach employs a high-capacity teacher to supervise a lightweight student network specifically designed to leverage the tiled-memory architectures of modern mobile SoCs. By prioritizing NPU-native primitives -- standard 3x3 convolutions, ReLU activations, and nearest-neighbor upsampling -- and employing a progressive context expansion strategy (up to 1024x1024 crops), the model achieves 37.66 dB PSNR / 0.9278 SSIM on the validation benchmark and 37.58 dB PSNR / 0.9098 SSIM on the held-out test benchmark at full resolution (2432x3200) in the Mobile AI 2026 challenge. Following the official challenge rules, the inference runtime is measured under a standardized Full HD (1088x1920) protocol, where it runs in 34.0 ms on the MediaTek Dimensity 9500 and 46.1 ms on the Qualcomm Snapdragon 8 Elite NPU. We further reveal an "Inference Inversion" effect, where strict adherence to NPU-compatible operations enables dedicated NPU execution up to 3.88x faster than the integrated mobile GPU. The 1.96M-parameter student recovers 99.8% of the teacher's restoration quality via high-alpha knowledge distillation (alpha = 0.9), achieving a 21.2x parameter reduction while closing the PSNR gap from 1.63 dB to only 0.05 dB. These results establish hardware-aware distillation as an effective strategy for unifying high-fidelity denoising with practical deployment across diverse mobile NPU architectures. The proposed lightweight student model (LiteDenoiseNet) and its training statistics are provided in the NN Dataset, available at https://github.com/ABrain-One/NN-Dataset.