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Samsung Electronics Co. was tapped by the International Business Machines Corp. (IBM) to manufacture a new processor chip for enterprise hybrid cloud computing dubbed the IBM POWER10.
According to IBM, Samsung's industry-leading semiconductor manufacturing technology would be combined with IBM's CPU designs to create the processor.
The American company added that the chip is IBM's first commercialized processor built using Samsung's 7-nanometer manufacturing technology.
The two companies have been in partnership on research and development over a decade.
The deal with IBM would help Samsung challenge Taiwan's TSMC and the US's Qualcomm for global superiority in the non-memory chip market.
Last year, Samsung unveiled a 133 trillion won invest plan by 2030 to expand its non-memory and foundry business.
The world's largest memory chipmaker also unveiled measures to develop the semiconductor ecosystem with increased investment for the foundry and non-memory segment to diversify its portfolio.
The investment will allocate 73 trillion won for local research and development, and 60 trillion won for infrastructure.
