LG move to make its own mobile chips could be a blow to Qualcomm

LG reportedly plans to start building its own in-house mobile chips, joining the likes of Apple, Samsung and Huawei. The decision could strike a major blow to semiconductor company Qualcomm, to which LG is a major customer.

Korean phone manufacturer LG will use Intel's 10-nanometer process to develop a new generation of mobile processors, based on ARM's 64-bit technology. These will be built in Intel factories and used within LG's own electronics and mobile devices.

It's unclear whether LG's home-grown chips will be limited to certain product ranges or used across all devices. Either way, it's sure to have a knock-on effect for Qualcomm, who has traditionally provided the processors for LG's smartphones.

LG has been attempting to cut its dependency on the chipmaker for some time. Earlier this year, the companies became embroiled in a lawsuit over licensing fees for Qualcomm's chipsets.

LG is not the first customer Qualcomm has seen depart either: Samsung famously snubbed Qualcomm's Snapdragon 810 for the Galaxy S6 back in 2015, and since then its growing self-reliance has been damaging to Qualcomm.

Apple and Huawei, who rank highly in Eastern and Western respectively, also have their own chip designs. Meanwhile, low-cost players like MediaTek and Marvell are gaining market share as they offer a cheaper alternative to Qualcomm'.

It's unclear when the first LG-powered devices will hit the market, although it's unlikely to be for some time given that actual production has yet to begin. LG's forthcoming V20 flagship, for example, is widely expected to come packing Qualcomm's Snapdragon 820 chipset.