Samsung is unveiling its next-generation of chips, a key component for the next generation microprocessor. 

The chips, codenamed the SLS and SLS-X, are expected to be unveiled in the second quarter of 2017.

The chipmaker says the SLCs will have 1.2x the performance of previous generation chips, with 20nm technology, and will be available for purchase by the end of the year. 

“Silicon Valley is where you get the biggest bang for your buck,” said Lee Byung-sik, president of Samsung Electronics Co., Ltd., the world’s largest maker of mobile phones and computers. 

Samsung says the chips will cost $150 less than previous generation microprocessors.

“We are able to combine a superior manufacturing process with the next-gen technology in a new way, making the SLP-X more competitive and better suited to the needs of the consumer,” said Mr Lee. 

While Samsung has not released the specifications of the chips, analysts believe the chip will feature the same 40nm technology found in the S2 chip, the first chips to be released in 2018. 

Mr Lee said the chipmaker was working on more advanced processes to produce the chips in a “more timely manner.” 

The SLS is a next-stage microprocessor, which has been designed to handle new types of tasks, like gaming. 

It has been tested to perform on par with the previous generation S2 and S3 chips. 

In the past, Samsung has launched new microprocessor chips based on 28nm technology. 

Silicon valley is the epicenter of the semiconductor industry. 

Its largest companies are Samsung Electronics, LG Electronics, Taiwan Semiconductor Manufacturing Co., and TSMC. 

Companies like Intel and AMD have also come to the Valley. 

Apple is a major presence in the Silicon Valley, as is the pharmaceutical company Johnson & Johnson. 

Image copyright Samsung Image caption Samsung’s chip could have a huge impact on the industryImage copyright Getty ImagesImage caption The SLS chips will be more expensive than other chips Image copyright ReutersImage caption Samsung says the new chip will offer better performance than previous generations Image copyright APImage caption Mr Lee said that Samsung will be able to offer its chips to more consumers in the US in the first half of 2017