LG Outsources Processor Production to Intel

19 Aug

LG has reportedly decided to outsource the R&D and production of mobile-phone processors to Intel, weaning its reliance on Qualcomm for such processors.

The report broke out during the Intel IDF conference in San Francisco, shortly after announcement by Intel of its cooperation with ARM during the occasion.

As such, LG will follow the pace of its rival Samsung in seeking self-supply of processors. Samsung has not only owned self-developed processors but also manufactured chips for Apple and Qualcomm. Huawei has also furnished its mobile phones with self-developed processors. LG used to own self-developed processors before embracing Qualcomm’s products.

LG is expected to employ Intel’s cutting-edge 10nm process in producing its self-developed processors, which will rival the products of its competitors, giving it an edge in cost and other aspects, according to analysts.

According to the technology roadmap of Intel, 10nm process will give rise to thinner chips with less power consumption and more cores, which have become mainstream for medium- and high-end smartphone processors. Although the extent for LG in using self-developed chips is still unclear, such chips are likely to be applied in smartphones and tablet PCs, among others but will not hit the market until 2017.

LG has yet to comment on the report, which, if confirmed, will impact the operation of Qualcomm. It remains to be seen whether other mobile-phone manufacturers will follow the example of LG, flocking to Intel for the supply of chips, just like what PC makers did in the past.