American semiconductor company Xilinx Inc. (Xilinx Inc.) said on Wednesday that it has won a deal to supply 5G network equipment chips to Samsung Electronics Co., Ltd. (Samsung Electronics Co., Ltd.).
The financial terms of the transaction have not been disclosed.
Xilinx produces programmable chips for telecommunications equipment, such as base stations manufactured by Ericsson, Nokia and Huawei Technologies Co., Ltd. (HWT.UL). However, US authorities prevented the company from shipping certain products to Huawei.
Samsung is well-known for consumers ’mobile phones, and it has been building and expanding its business in the network equipment industry to power many 5G networks launched in South Korea.
The two companies said that Samsung will use Xilinx’s “Versal” computing chips, which will help a technology called beamforming that allows 5G devices to process more wireless data than previous generations of networks .