%MetaPlatforms () and %Qualcomm () have struck a deal to develop custom %Microchips for use in %VirtualReality products.
The two U.S. technology companies have inked a multi-year agreement “to collaborate on a new era of spatial computing,” using Qualcomm’s “extended reality” (XR) %Snapdragon technology, they said in a news release.
Extended reality refers to technologies that involve both virtual and augmented reality, which merge the physical and digital worlds.
Meta Platforms, which is the parent company of social media platform Facebook, is increasingly focused on developing the %Metaverse , a virtual reality world that is largely theoretical at this point.
Qualcomm makes microchips, semiconductors and software related to wireless technologies, including for fifth generation (5G) wireless products.
Meta currently makes a line of virtual reality headsets under the “Quest” brand name. The Meta Quest 2 headset (latest edition) uses Qualcomm’s Snapdragon XR2 chipset.
Designing microchips inhouse is increasingly popular among technology companies. In the smartphone sector, both %Apple () and Samsung design their own custom processors to differentiate themselves from competitors.
“These chipsets will help us keep pushing virtual reality to its limits and deliver awesome experiences,” said Meta chief executive officer (CEO) Mark Zuckerberg in the news release.
Financial terms of the deal between Meta Platforms and Qualcomm were not disclosed.
Meta’s stock is down 51% this year and trading at $165.36 U.S. per share. Qualcomm’s stock has declined 30% this year to $129.92 U.S. a share.