This story originally appeared on ShroutResearch.com.

Continuing down the path with its semi-custom design division, AMD today announced a partnership with Chinese company Zhongshan Subor to design and build a new chip to be utilized for both a Chinese gaming PC and Chinese gaming console.

The chip itself will include a quad-core integration of the Zen processor supporting 8 threads at a clock speed of 3.0 GHz, no Turbo or XFR is included. The graphics portion is built around a Vega GPU with 24 Compute Units running at 1.3 GHz. Each CU has 64 stream processors giving the “Fenghuang” chip a total of 1536 SPs. That is the same size GPU used in the Kaby Lake-G Vega M GH part, but with a higher clock speed.

The memory system is also interesting as Zhongshan Subor has integrated 8GB of GDDR5 on a single package. (Update: AMD has clarified that this is a GDDR5 memory controller on package, and the memory itself is on the mainboard. Much more sensible.) This is different than how Intel integrated basically the same product from AMD as it utilized HBM2 memory. As far as I can see, this is the first time that an AMD-built SoC has utilized GDDR memory for both the GPU and CPU outside of the designs used for Microsoft and Sony.

This custom built product will still support AMD and Radeon-specific features like FreeSync, the Radeon Software suite, and next-gen architecture features like Rapid Packed Math. It is being built at GlobalFoundries.

Though there are differences in the apparent specs from the leaks that showed up online earlier in the year, they are pretty close. This story thought the custom SoC would include a 28 CU GPU and HBM2. Perhaps there is another chip design for a different customer pending or more likely there were competing integrations and the announced version won out due to cost efficiency.

Zhongshan Subor is a Chinese holding company that owns everything from retail stores to an education technology business. You might have heard its name in association with a gluttony of Super Famicom clones years back. I don’t expect this new console to have near the reach of an Xbox or PlayStation but with the size of the Chinese market, anything is possible if the content portfolio is there.

It is interesting that despite the aggressiveness of both Microsoft and Sony in the console space in regards to hardware upgrades this generation, this Chinese design will be the first to ship with a Zen-based APU, though it will lag behind the graphics performance of the Xbox One X (and probably PS4 Pro). Don’t be surprised if both major console players integrate a similar style of APU design with their next-generation products, pairing Zen with Vega.

Revenue for AMD from this arrangement is hard to predict but it does get an upfront fee from any semi-custom chip customer for the design and validation of the product. There is no commitment for a minimum chip purchase so AMD will see extended income only if the console and PC built around the APU succeeds.

Enthusiasts and PC builders have already started questioning whether this is the type of product that might make its way to the consumer. The truth is that the market for a high-performance, fully-integrated SoC like this is quite small, with DIY and SI (system integrator) markets preferring discrete components most of the time. If we remove the GDDR5 integration, which is one of the key specs that makes the “Fenghuang” chip so interesting and expensive, I’d bet the 24 CU GPU would be choked by standard DDR4/5 DRAM. For now, don’t hold out hope that AMD takes the engineering work of this Chinese gaming product and applies it to the general consumer market.