US chipmaker Intel Corp will manufacture chips for Panasonic audio visual equipment such as televisions, Blu-Ray players and set-top boxes.
Reuters reports that the company has signed a manufacturing agreement with the System LSI Business Division of Panasonic Corp.
The move comes as Intel deals with a slowing in the market for personal computers. At present the company does not have a focus on chips for smartphones and tablets which are largely responsible for the drop in the PC market.
"Intel's 14nm Tri-Gate process technology is very important to develop the next- generation SoCs," said Yoshifumi Okamoto, director, Panasonic Corporation SLSI Business Division in a statement.
"We will deliver highly improved performance and power advantages with next-generation SoCs by leveraging Intel's 14nm Tri-Gate process technology through our collaboration."
Intel's leading-edge 14nm low-power process technology, which includes the second generation of Tri-Gate transistors, is optimized for low-power applications.
According to the company, this will enable Panasonic's SoCs to achieve high levels of performance and functionality at lower power levels than was possible with planar transistors.
Five other semiconductor companies - Altera, Achronix Semiconductor, Tabula, Netronome and Microsemi - have announced agreements with Intel's custom foundry business.