It’s no secret that Samsung’s mobile business isn’t performing as well as it used to and the company’s bottom line is being significantly aided by its semiconductor business. Even though analysts now expect that the chip business will see a drop in sales in this quarter things might be looking good for it in the long run. A report out of Korea claims that Samsung has inked a deal with AMD and will now start manufacturing chips for Advanced Micro Devices.

AMD is most popular for creating chips including CPUs and GPUs that are used in personal computers as well as major gaming consoles, but since it no longer has a fab business, it would make sense for the company to link up with Samsung for this purpose.

Electronic Times of Korea reports that as per this deal Samsung is going to manufacture 14nm based CPU and GPU chips for AMD in the coming year. Currently manufacturing responsibilities for AMD are handled by GlobalFoundries, which previously belonged to AMD but is now owned by a firm based in Abu Dhabi.

GlobalFoundries is now said to share the manufacturing responsibilities for AMD’s latest “Greenland” GPUs and “Zen” CPUs with Samsung in 2016. It merits mentioning here that no confirmation of this deal has been sent out by either Samsung or AMD as of now.

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