Samsung Electronics to start making new chips for AMD in 2016: Electronic Times

A Samsung logo is seen at Samsung Electronics' headquarters in Seoul, South Korea, December 18, 2015. Picture taken on December 18, 2015. REUTERS/Kim Hong-Ji

SEOUL (Reuters) - Tech giant Samsung Electronics Co Ltd will start making new chips for Advanced Micro Devices (AMD) Inc next year, South Korea’s Electronic Times reported on Tuesday citing unnamed sources.

The paper said Samsung’s foundry business and Globalfoundries will jointly start producing a central processing chip as well as a graphics processing chip for AMD next year using their 14-nanometre technology.

Samsung has been trying to increase its external client base in recent quarters for its components businesses as it seeks to offset the earnings decline for its smartphone division. The firm already makes chips for companies such as Apple Inc and Nvidia Corp.

Samsung did not immediately comment, while AMD could not be immediately reached for comment.

Reporting by Se Young Lee; Editing by Stephen Coates