China sets out to become global leader in chip manufacturing

China wants to encourage more investment in its local chip-making industry

By , IDG News Service |  Hardware

Tuesday's guidelines mark China's latest effort to promote its domestic tech industry. The country is still largely dependent on foreign IT vendors. For example, Microsoft's Windows and Google's Android are the two most popular OSes in the country and Intel chips power many of the PCs and servers in China, as well as its fastest supercomputer, the Tianhe-2.

But certain Chinese companies are growing quickly. Lenovo is the world's largest PC maker, and Huawei Technologies is a major supplier of networking gear. Chinese chip vendors Allwinner and Rockchip are also putting pressure on foreign rivals and gaining market share in lower-end tablets and smartphones.

Lately, China has also been pointing to the dangers of using foreign technology, in light of the U.S.' surveillance programs. Last month, the Chinese government threatened to ban vendors from selling their products in the country if they failed to pass a new "cybersecurity vetting system."

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