Samsung Electronics will supply central processing units (CPUs) for computers to Intel to help address the U.S. chipmaker's chip supply issues, Yonhap News Agency reported on Thursday citing industry sources.
Intel has been struggling to meet demand for 14-nanometer chips for PCs since late 2018 and recently issued an apology to its customers for shipment delays.
"Samsung was chosen as a partner as it is one of a couple of foundries that can meet Intel's demand for 14-nm production, among other reasons," a source said, without elaborating on the production schedule.
Intel is a global leader in CPUs, which power desktops, servers and embedded devices, and is followed by Advanced Micro Devices (AMD).
The latest agreement is expected to boost Samsung's bid to bolster its non-memory chip business after announcing a semiconductor investment plan worth 133 trillion won (US$112.9 billion) earlier this year.
Samsung, the world's largest memory chip maker, has promoted its advanced chip manufacturing processes to narrow the gap with Taiwan's TSMC, the world's leading semiconductor foundry.