NXP has said that it is selling a single-chip for ultra-low-cost phones to Samsung from the end of the year.

Chief Executive Frans van Houten told Reuters the deal will mean that Samsung can sell cheap phones for $25.

NXP acquired the single chip technology when it took over Cellular Communications from Silicon Laboratories for $285 million earlier this year.

NXP was the semiconductor arm of Philips but was bought by a consortium of private equity firms.

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