LG, Intel form long-term alliance

LG Electronics announced on Tuesday that it has signed a long-term business contract with Intel Corp. of the United States for comprehensive cooperation in the fields of technology, product sales and intellectual property rights. LG will expand sales of products that use Intel`s microprocessors and other computer-related core chips, according to company officials. They noted that the two companies would work together for development of new products and for exploration of markets.

Intel is expected to pay a certain amount of royalty to LG Electronics, although the two companies are supposed to share each other`s patents under the contract. The deal will serve as an opportunity for LG to strengthen its position in the domestic market for information technology products, such as mobile computers, Internet products and home networking products, the officials said.