But Xilinx chips do not compete with any Samsung offerings.

The deal also shows Samsung has made strides in adopting new manufacturing technology since its entry into an alliance led by IBM. Samsung has moved swiftly to offer 45-nanometer contract manufacturing technology to clients.

Xilinx chips are field programmable, which means that they can be programmed with software to perform a variety of functions in different devices. The chips are popular in markets including aerospace, automotive and communications, as well as industrial and consumer devices.

Samsung Electronics is the world's largest memory chip maker as well as a major producer of mobile phones, LCD panels and other products.