LG is teaming up with TSMC to manufacture their own processors. LG has long used Qualcomm processors in their devices, but the move to design and build their own processors follows in the footsteps of Android rival Samsung, who has been manufacturing their own Exynos processors for years. Apple, too, has been designing their own processors, including the Apple A7 that powers the most recent generation iPhone 5s, iPad Air, and iPad Mini.
LG confirmed the move to their own application processors with The Korea Herald. They've partnered with TSMC of Taiwan to create these processors, with LG tackling the design and TSMC handling the manufacturing. TSMC has expanded rapidly in recent years, taking on more and more of Apple's processor business as Apple moves away from sourcing components from rival Samsung.
According the The Korea Herald's source on the matter, the upcoming LG G3 could find itself powered by these as-of-yet unnamed LG processors when its introduced this summer.
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