HTC is reportedly developing its own processors in order to reduce company's dependence on third-party makers like Qualcomm, and NVIDIA. According to a report in China Times, HTC is currently working on a dedicated application processor for low-end devices that is scheduled to go in production next year. Currently in the phase of re-thinking its strategies, company has signed a memorandum of cooperation with ST-Ericsson for the chip development.
Seen by many as the mimicry of Apple and Samsung, both of which currently put their own application processors in their flagship devices, it will reduce company's reliance on Qualcomm. HTC currently uses Qualcomm chips in most of its devices and has recently itself opted for NVIDIA Tegra 3 processor for its One X smartphone. This move will also allow the Taiwanese manufacturer to better integrate software and hardware in its phones, thus giving a better user-experience.

The details of deal with ST-Ericsson are not clear at the moment, but we hope to hear something very soon.