If latest reports are to be believed, chip manufacturer AMD is currently working on the processor for the upcoming Nintendo NX, a gaming console that is expected to be released next year.

Christian Today reports that the speculations started doing the rounds in December 2014 when AMD chief of finance Devinder Kumar mentioned that they were developing two semi-custom chip designs. One of these chips is meant for use in a device that will supposedly function "beyond gaming," while it is believed that the second chip is meant for an upcoming game console.

Rumors regarding the chip maker developing the processor of the Nintendo NX resurfaced when AMD CEO Lisa Su reported that they succeeded in sealing the deal for a third contract for a semi-custom chip design, which will reportedly earn billions of dollars for the company in terms of sales. The AMD CEO, however, refused to specify the product that will be using their third chip design.

It is worth mentioning here that AMD, which manufacturs non-traditional gaming as well as high performance computing devices, currently supplies the chips for Nintendo's existing video game console, the Wii U. This is one reason why it would not come as a surprise if the Japanese gaming entertainment company also entrusts them with the chips for their upcoming gaming device.

In addition, AMD supplies the chips that run other popular current generation game consoles, including the PlayStation 4 from Sony Entertainment and the Xbox One from Microsoft.

Meanwhile, AMD describes the chips that they manufacture for the game consoles as "semi-custom" chips, wherein the central processing unit and graphics processing unit are combined to form a single chip.

A report in VentureBeat states that Moor Insights & Strategy analyst Patrick Moorhead is of the view that AMD will certainly work on the upcoming next-generation Nintendo console. He said, "I think it's a very high probability unless Nintendo goes Android where I would expect them to go with Nvidia."

Meanwhile, Nintendo is silent regarding the specifics of the upcoming Nintendo NX.