GlobalFoundries, Semiconductor manufacturing company announced on Wednesday that it has penned a deal with STMicroelectronics to produce and supply chips for STMicroelectronics. 

First production of chips by GlobalFoundries is planned to start in 2010.

GlobalFoundries will use the 40-nanometer process to manufacture chips for STMicroelectronics.

Both companies believe that the 40-nanometer process is ideal for the next generation of wireless applications, consumer electronics etc., which demand outstanding presentation and stretched battery life.

GlobalFoundries spokesman, Jason Gorss said, "Bringing on a leader in low-power technology as our first customer is an important milestone in our transformation to an independent foundry.”

It may be noted here that earlier, GlobalFoundries used to manufacture chips AMD.

34.2 percent of the GlobalFoundries is possessed by AMD, whereas the rest is owned by Advanced Technology Investment Co.

GlobalFoundries did not provide details of the deal, while STMicroelectronics could not be approached for comment.