South Korea’s LG Electronics plans to manufacture mobile chips at Intel’s factories starting next year.
At the Intel Developer Forum 2016 this week, the US chip giant announced it would enable customers to manufacture ARM-based chips in its foundries, including using its most advanced 10nm FinFET process.
Other Intel Custom Foundry customers named included Chinese chipmaker Spreadtrum, an existing Intel partner.
LG, which currently sources most of its processors from Qualcomm, is following the trend for handset makers to develop their own complex chip designs to reduce costs and give them more control over supplies.
This is not the first time LG has looked to increase its control over the processors used in its devices, but the deal with Intel certainly signals its intentions going forward.
Samsung, as one of the largest semiconductor firms in the world, designs and produces its own processors, while Apple and Huawei also have developed their own chip designs. (Samsung also produces chips for rivals Apple and Qualcomm.)
Recode noted that LG has not specified what product lines will use its own 64-bit mobile chips.
Meanwhile, Intel has struggled as the industry has shifted away from PC-style processors to ARM-based chips.
In April it dropped its SoFIA integrated modem/processor packages as well as a version of its Atom processor targeting tablet computers.
UK-based ARM is set to be acquired by Japan’s SoftBank for $32 billion.