IBM is to outsource some of its PowerPC processor production to Samsung, reports DigiTimes.

Citing "Taiwanese sources", DigiTimes maintains that the preliminary agreement means Samsung will manufacture PowerPC chips using its 0.18-micron process.

The move follows the failure of another contractor to supply quality processors in volume.

It does not necessarily imply PowerPC 970 processor production. IBM is adopting PowerPC chips for mobile devices, as well as a selection of its server products.