Qualcomm has invested $7 million in Israeli handset firm Modu, and will be working with the company to build its modular handsets, according to TechCrunch.

First launched at last year's Mobile World Congress, Modu's USP is the fact that its 'core' can be used with any number of customised jackets, depending on what features a user wants.

The company had a strange 2008 though - in March, it was reportedly looking for a $100 million funding round, yet by November it was announcing plans to lay off 33 per cent of its workforce.

Games haven't been a big focus for Modu - its blurb has been more about music, GPS and camera jackets.

However, the company's core could clearly be used for gaming devices too, a prospect which may be more likely now Qualcomm is involved.