In a statement, Xilinx Inc, an American semiconductor firm stated, it had won a deal to supply chips to Samsung Electronics Co Ltd for 5G networking equipment.

It did not disclose the financial terms of the deal.

Xilinx makes programmable chips used in telecommunications equipment including those used in base stations made by Ericsson, Nokia and Huawei Technologies Co Ltd.

Known for its consumer electronic devices, Samsung has been steadily building and expanding its business in the telecom network equipment industry; its components powers many of the 5G networks rolled out in South Korea.

In a statement, both companies said, Samsung will use Xilinx’s “Versal” computing chips, which will help with a technology called beamforming that lets 5G gear handle more wireless data than previous generations of networks.