Apple is said to be in talks with Renesas Electronics to buy its majority-owned joint venture that designs chips for smartphone displays.
Renesas Electronics' latest system-on-a-chip has eight ARM processing cores to help next-generation, in-car infotainment systems handle multiple streams of 1080p video and augmented reality apps.
ARM is promising close to 70 percent processor power savings with a new chip design called Big.Little, and mobile devices on display at the Mobile World Congress provided the first glimpse of how the technology works.
The mobile chipset market is in a state of flux with a number of key vendors struggling, but analysts say the result of the turmoil will be more advanced high-end smartphones and cheaper low-end devices.
Renesas Electronics has started test production at a second chip-manufacturing line at its quake-hit Naka plant in Japan, putting the company another step closer to resuming commercial production.
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First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.