[THE INVESTOR] IBM said on Dec. 21 that Samsung Electronics will supply 7-nanometer microprocessors for its CPUs.

Samsung will manufacture 7nm Power processors for IBM Power Systems, IBM Z and IBM LinuxONE high-performance computing systems and cloud offerings. 

The deal is expected to help Samsung, which has Qualcomm as one of its clients, to beef up its foundry business utilizing extreme ultraviolet process technology, industry watchers said.

“The agreement combines Samsung’s industry-leading semiconductor manufacturing with our high-performance CPU designs,” IBM said. “It positions IBM and Samsung as strategic partners leading the new era of high-performance computing specifically designed for artificial intelligence.”

The two companies will also be extending their strategic research alliance, which has lasted for 15 years, IBM said.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)