The South Korean giant will manufacture Xilinx chips using complex 45-nanometer manufacturing technology at factories in South Korea, Samsung said in a news release.

The deal is a coup for Samsung, said Kenneth Lee, chip industry analyst at Primasia Securities in Taipei.

"This is the first time Samsung has won chip orders from Xilinx," he said. "Previously, Xilinx had a long term partnership with [Taiwan's United Microelectronics], but this deal will affect that relationship."

Signing on Xilinx as a customer also bodes well for Samsung's advance into the foundry chip manufacturing business, which is currently dominated by UMC and rival Taiwan Semiconductor Manufacturing (TSMC).

When Samsung announced its entry into the contract chip making business a few years ago, it met with little success because of concerns the company competed against its customers, Lee said. For example, Samsung makes a variety of its own chips, including communications chips. A company that wanted communications chips manufactured might, therefore, hesitate to work with Samsung.