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(Pocket-lint) - The LG G7, LG's 2018 flagship, should return to using the very latest Qualcomm processing chip, the Snapdragon 845, according to a report out of Korea. The news originally comes from Aju Business Daily, via The Investor.

Given the LG G6 had to settle for 2016's flagship processor, the Snapdragon 821 and its closest rivals have used the Snapdragon 835, LG will want to be back on a level playing field next year.

LG and Qualcomm are believed to have started working together on developing the Snapdragon 845 in early May. It's thought to be based on 7-nanometer chip manufacturing technology, making it more efficient, and a claimed 30 per cent more powerful than the current Snapdragon 835.

The new chip will also allow smartphones to deliver improved virtual and augmented reality features, with an "industry official" saying: "The adoption of the Snapdragon 845 for LG’s next flagship phone seems inevitable, considering the emerging virtual reality and augmented reality solutions require more powerful data processing capability". 

The same sources have previously reported that Samsung and Qualcomm are also working together on the Snapdragon 845 chip, and that it will feature in 2018's Galaxy S9 flagship smartphone.

Samsung was believed to have got "first dibs" on the Snapdragon 835 processor in 2017, meaning LG either had to delay the launch of the G6, or opt for a different chip. Qualcomm has previously told Pocket-lint this wasn't the case, claiming there was no contractual exclusivity.

With both South Korean smartphone manufacturers therefore believed to be developing next year's chip, it will be interesting to see who gets their smartphone on the market first.

Writing by Max Langridge.