Samsung had signed up with IBM on a new chip development project to power its next generation of electronic devices.

The South Korean electronics manufacturer joins Chartered Semiconductor and Infineon in making components using 65 nanometer and 45 nanometer CMOS process technology, that will product the next generation of smaller chips. The development work is being done at IBM's 300 mm Advanced Semiconductor Technology Center in New York.

In a separate agreement, Samsung also licensed the rights to use IBM's 90nm technology, which it plans to use in products like high definition televisions, DVD players, and mobile devices.

For Samsung, the deal was a necessary one, said Peter Glaskowsky, the editor-in-chief of Microprocessor Report. "These companies know they cannot remain competitive without the latest semiconductor technology," he said. "As far as I know, IBM is the only technology partner that's willing to help people with the whole package."

Infineon entered into its joint development agreement up with Chartered and IBM in August of last year, after dropping a research and development partnership with Singapore's United Microelectronics (UMC). At the time, UMC said that it would continue to develop its own 65nm process technology on its own.

Samsung is paying IBM an undisclosed amount of money in exchange for access to IBM's technology, according to an IBM spokesman.