ARM and GlobalFoundries have inked "a broad agreement on processor implementation and circuit optimization to provide mutual customers with a robust enablement program geared towards next-generation applications." The two are basically teaming up in a strategic partnership to allow mutual customers to develop processors for mobile products using ARM technologies and Globalfoundries' 28nm fabrication process.

The chips will be aimed at ARM's usual domain of smartphones, netbooks and other small devices. The collaboration will only further strengthen ARM's position in the mobile and embedded market. It comes at a time when major players are frivolously working toward a die shrink, such as Intel and its 32nm manufacturing process.

Intel's next-generation Atom processors are expected to be a more viable option in the mobile realm. The company is placing much focus on the upcoming Atom chips, which will feature a system-on-chip (SoC) design. The chips will include an integrated single-channel DDR2 memory controller and graphics core -- which is especially valuable in mobile devices.