Metaplatforms (GOAL -1.69%) has been associated with Qualcomm (QCOM -2.01%) for years to develop virtual reality (VR) applications, and the two companies have now taken another step to strengthen their relationship.

On September 2, Qualcomm and Meta announced at the IFA 2022 trade show in Berlin that they have signed a multi-year agreement under which the former will manufacture custom chips to power Meta’s Quest devices. Qualcomm will use its Snapdragon XR extended reality platform to make custom chips that will go into future Quest VR headsets.

It’s worth noting that Qualcomm is already pushing the Meta Quest 2 headset, and this long-term collaboration means the chipmaker is now well-positioned to seize a huge opportunity. Let’s take a closer look at the details of this…