System semiconductor design firm Coasia said on Wednesday that it will be supplying SoCs for heated e-cigarette to Jiangsu Tobacco.
Delivery of the SoCs will begin mid-year when Jiangsu Tobacco designates its e-cigarette developer, the South Korean firm said.
Coasia has been developing the chips with its subsidiaries Coasia Semi and Nexell.
The SoC combines the microcontroller unit, load drop out and USB charger into one chip.
Coasia said this saved cost by 40% and makes the chip take up less space within devices.
China has the most number of tobacco smokers and is the biggest manufacturer of e-cigarettes.
China Tobacco has subsidiaries like Jiangsu Tobacco across China that produces and distributes tobacco.
Coasia said it was also collaborating with other Chinese companies such as Smoore, RAIN and First Union to expand in the market there.