Samsung Electronics has reportedly won a contract to manufacture Nvidia's new graphic processing unit (GPU) chips on 14-nanometer processing technology. The Nvidia deal could benefit both Samsung Electronics and GlobalFoundries in the United States as the two firms have formed a manufacturing tie-up, allowing them to fabricate identical chips at their factories in Korea and the United States for 14-nanometer customers including Apple and Qualcomm.

"The latest agreement between Samsung and Nvidia is another positive factor lifting Samsung's logic chip business unit. The timing looks good as increased foundry customers justify the Korean chip giant's moves to find new revenue sources," a source familiar with the deal old the Korea Times.

Nvidia has been relying to TSMC for its GPUs.

GlobalFoundries won the rights to license the 14-nanometer design from Samsung and that allows it to duplicate Samsung processes.

At the same time, the two companies are still involved in legal tussle after Nvidia sued Samsung over allegations of patent infringement relating to its GPU technology.