Qualcomm will have its next-generation Snapdragon 820 mobile processors manufactured by Samsung Electronicx, website Re/code reported, citing unnamed sources. The move comes after Samsung opted to use its own Exynos processors for the recently launched flagship Galaxy S6 devices instead of the Qualcomm Snapdragon 810, prompting the U.S. firm to cut is financial outlook for the year.

Samsung and Qualcomm declined to comment on the report.

Samsung has been strengthening its position in the chip making market. Its
14-nanometer manufacturing technology gives the firm an edge over rivals such as TSMC, as smaller chips are more energy-efficient and deliver better performance.

Media reports say Samsung will make processors for Apple's new iPhones expected to launch later this year, and the firm also recently added Nvidia Corp as a contract manufacturing client.