With the U.S. taking action against Chinese tech giant Huawei, many wonder what China can do to maintain its foothold in the smartphone market. To answer this question, Cao Haitao, a brilliant professor at Minjiang University, has proposed that at least 30% of the smartphones on the Chinese market must use Chinese chips.
China is Trying to Rely More on Its Own Chips Instead of Chips from International Suppliers
According to the story by Giz China, this suggestion has met with mixed reactions from the public. While some argue that this regulation would give China the autonomy they want to lead the market away from any external pressure, others fear that a mobile market entirely dependent upon domestic chips will reduce phone performance compared to foreign products.
Doing so can ensure that the smartphone technology remains within the control of the Chinese government, and it can also encourage R&D investment to improve the process. With many big players in the global chipset market, such as Qualcomm and MediaTek, heavily relying on American technology, the suggestion from Cao Haitao is a much-needed initiative to sustain the industry.
TSMC Receives Over 80% of Its Income from Foreigners Making Capital Flow a Huge Concern
Despite the positive implications of this policy, there are dissenting voices. Some netizens believe that utilizing only Chinese chips would severely hinder the performance of smartphones. They said that to compete on the global stage, there are no other ways than leverage technology from the U.S.
On the other hand, some are more concerned with the issue of capital flow. They argued that TSMC, the leading semiconductor industry in Taiwan, receives more than 80% of its income from foreigners.
People are Still Contemplating Whether the Suggestions Given are Actually the Right Decision
Thus that money is taken away in large portions by foreign investors. Overall, the action taken by the U.S. towards China is a wake-up call that needs an answer soon, as further detailed in an article by My Drivers.
While it is debatable whether the suggestion made by Cao Haitao is the right decision, it is undeniable that the Chinese government must act promptly to protect tech companies. As the debate continues, one thing is certain-the fate of the Chinese smartphone industry is in the hands of the Chinese government.
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The Feasibility of the Suggestion is Still Being Discussed as Developing and Maintaining Indigenous Technology Highlighted
The debate over the feasibility of Professor Cao Haitao's suggestion is still ongoing, but this highlights the importance of developing and maintaining indigenous technology to ensure a sustainable and profitable market. Whether or not the Chinese government will purchase the suggestion remains to be seen.
It is impossible to predict whether or not the Chinese government will accept this plan. Nevertheless, it is vital to consider the potential consequences of such a drastic move, both for the Chinese market and consumers. Until a concrete conclusion is reached, it is important to be careful and weigh the pros and cons before deciding one way or another.
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