According to one forecast, by 2020, 85% of China's semiconductor consumption will come from overseas, and only 15% will be manufactured locally; while US chip makers will be the main suppliers in the Chinese market, followed by Samsung Electronics. The Chinese government hopes to reverse this situation by allowing Chinese manufacturers to fill 50% of local semiconductor demand by 2020, with a view to boosting domestic semiconductor production capacity and playing an important role in the global smartphone supply chain.

In order to achieve the above goals, China will have to support several local semiconductor companies with revenues of US$10 billion to achieve the required US$150 billion in chip sales. But at present, there are only two semiconductor manufacturers in China that have revenues of more than one billion US dollars – HiSiliconTechnologies and Spreadtrum Communications.

China intends to expand semiconductor supply through the following strategies:

Between 2016 and 2020, invest $100 billion to build a domestic semiconductor industry ecosystem; these funds will help strengthen the competitiveness of Chinese fabless chip makers in IP and product design, while cultivating engineers to ensure graduation from universities The number of new engineers in the college is sufficient for the industry. Participating in the investment include China's official investment agency Tsinghua Unigroup and Shanghai Pudong Science and Technology Investment Co., Ltd. (Shanghai Pudong Science and Technology Investment).

The establishment of a fab will aim to achieve a capacity of 1 million wafers per month by 2020; those fabs will support the manufacture of both memory and non-memory products, with emphasis on competitive process technologies. The joint venture company will likely be part of the implementation of this plan.

China's monthly wafer production capacity target does not include foreign companies that manufacture chips in China; for example, Samsung in Xi'an, SK Hynix in Wuxi, and Intel in Dalian. ), as well as Texas Instruments (TI), which is located in Chengdu.

It is estimated that in 2015, Chinese brand smartphone shipments in the global market will total 643 million, while non-Chinese brand smartphone shipments will be 594 million; this kind of Chinese domestic brand shipments surpass foreign brands. The main reason is that the Chinese market is huge, and the sales volume of competitive Chinese mobile phone brands has also increased in markets outside China such as India and South America.

Chinese local brand operators design and sell their own smartphones, and they are commissioned by local manufacturers such as HonHai Precision. The next stage is to let Chinese local manufacturers make mobile phone chips. At present, Chinese chip manufacturers are already producing 4G modem chips and application processors. Mobile phone displays are also produced locally in China; Chinese domestic battery suppliers are also expanding production capacity.

Those Chinese manufacturers have a very positive attitude towards promoting market growth, and are willing to invest and take risks in the local market; this is very different from international brands such as Nokia, Motorola Mobility and BlackBerry. At present, the main players in the smartphone market competition are Apple, Samsung and Chinese local brands. Other wars may also start, but through effective planning and integration, it will bring real positive influence to Chinese semiconductors.

On the whole, while maintaining its focus on low-cost, China is experiencing a shift to higher-end technologies; China's automotive, base station, server and other product supply chains continue to increase, and LED lighting equipment production is also in a state of high growth. Although China still needs a lot of efforts to achieve its goals, there is a firm entrepreneurial environment and strong financial support from the government. The future development should not be underestimated.