HTC will apparently partner with beleaguered semiconductor company ST-Ericsson to produce its own chipset for entry level smartphones.
According to China Commercial times, the two parties have signed a memorandum of understanding with HTC becoming the fourth manufacturer after Apple, Samsung and Huawei to develop its own application processor.
Until last year, Qualcomm was the only chipset supplier for HTC but it seems that Qualcomm's reluctance to provide with quad core processors at the higher end of the market and more sensibly priced chipsets at the entry level combined with poor sales caused the Taiwanese manufacturer to jump ship.
A new chip partner will almost certainly means lower prices at the sub-£100 price point where HTC will have to face the increasing threat of ZTE and Huawei.
China Times says that the first chips are expected to appear in 2013, possibly in time for Mobile World Congress. ST-Ericsson is also set to win more clients with Sony and Nokia being the two current partners that have already announced devices based around the Novathor series.
Source : China Times