LG has been battling hard with its home grown arch rival Samsung in almost everything. Their latest bragging right is the already-in-market dual-core Optimus 2X and Optimus 3D Android smartphones, and the mighty Optimus Pad tablet.

However, there is a problem with them. The processors powering them are not made by LG themselves, instead provided by Nvidia for the Optimus 2X and Optimus Pad, and by Texas Instruments for the Optimus 3D, making LG a huge step behind its strongest rival Samsung, who is producing its own dual-core SoC.

Now that they’ve identified the problem, LG stepped up the game by buying its own ARM license, which is specifically for the Cortex-A9 design that is dominating today and the Cortex-A15 with Mali-T604 graphics that promises to rule the mobile world from 2012 onwards — and start churning out its own processors shortly after.

Since LG has the ability to manufacture their own processors too, the rivalry will heat up even more in South Korea, and in the global market of handheld devices.