Taking a cue from Apple and Samsung, HTC is said to be working on a chip to power low-end phones.

The company has already signed a memorandum of cooperation with ST Ericsson, but little is known about the specifics. HTC stuck with Qualcomm parts for years, but it has also tapped Nvidia for its flagship One X superphone.

However, HTC never paid much attention to the low end market and this is where ST Ericsson steps in. Although it’s not the biggest name in the industry, ST Ericsson is already offering a range of entry level dual-core chips, like the NovaThor U8500 used in Sony’s latest Xperia phones.

If true, it will be interesting to see how it all pans out for HTC.

More here.