SANTA CLARA, Calif.--Intel Corp. here today announced a long-term business agreement with South Korea's LG Electronics Inc., which plans to expand development and sales of products based on Intel's microprocessors and chip sets.
The wide-ranging agreement involves product sales, technology, and intellectual property as well as a new cross-licensing pact between the two companies, according to Intel, which did not release specific details of the arrangement. Intel and LG Electronics said they plan to pursue additional market and sales opportunities together under the new agreement. Intel said it expects to evaluate the potential for LG Electronics to provide additional products, manufacturing, and design services to the Santa Clara chip giant.
"The agreement also allows us to broaden the range of strategic business opportunities we can explore in the future," said Pat Gelsinger, vice president and chief technology officer for Intel's Architecture Group.
Under the cross-licensing pact, Intel will make an undisclosed payment to LG Electronics. The specific terms of the payment or the licensing agreement were not released.
"LGE views this enhanced relationship with Intel as an opportunity to become a global leader in mobile computing and the rapidly expanding markets for Internet appliances and home networking," said Hee-Gook Lee, executive vice president heading corporate R&D at the Seoul-based company. "We hope to achieve this by combining LGE's world-class product development and manufacturing capabilities with Intel's cutting edge chip solutions and technologies."