LG to create its own smartphone chips -

LG has confirmed that it's working on creating chips for smartphones.

However, it hasn't squawked on the specifics. It is probably keeping tight-lipped because the last three quarters haven't been the kindest to LG's mobile division - falling increasingly below par with profits suffering.

Sales in LG's mobile communications business, which includes phones, fell 14.7 percent to $3.72 billion (3.58 trillion won). And although mobile phone handset sales rose 8 percent to 30.6 million devices in the fourth quarter from the third, they declined 10 percent from the year before.

In July it also posted its widest-ever quarterly loss of $103 million in the handset business, prompting it to dump its CEO.

It has also been trailing behind the likes of HTC and Samsung in bringing out new smartphones with lasting appeal.

But it hopes by creating its own chips that it will be able to strengthen its mobile devision and kick-start some real success in this field. 

According to Bloomberg, semiconductor company MtekVision is looking into developing chips with the company.

Analysts also told Bloomberg that the company could do well from making its own chips, which as it would be working within its own supply chains. The chips are said to provide higher power than those already on the market. What will other suppliers think?