Limited access to high-end semiconductor chips poses a major threat to China’s world-leading smartphone manufacturing industry Chinese smartphone firms will face an ‘innovate or die’ situation, especially as multinationals look to diversify, industry insiders say
Last year, Apple revealed its intention to move parts of its manufacturing process out of China and into emerging markets such as India and Vietnam after experiencing stringent COVID-19 curbs in mainland China.
Chinese companies with operations in India will still play a key role in Apple’s plan to make some iPhones in the country, The New York Times reported in September last year. In Chennai, India, subsidiaries of Chinese companies will supply chargers and other components for iPhones, the newspaper reported, citing people familiar with the situation.
“Crucial to the colossal telecoms industries and digital economy, China cannot abandon the smartphone sector. Only by motivating scientists, researchers and engineers to make innovations, will China be able to grasp chip-making technologies.” John Kou, a veteran electronic engineer in his early 50s in Shenzhen, said China’s whole electronics sector would suffer if foreign high-end smartphone makers continue to diversify.
Liu Kaiming, head of the Institute of Contemporary Observation in Guangdong, attributed China’s rise as the world’s smartphone manufacturing hub to its complete supply chain, the existence of a large number of skilled workers and a huge domestic market.
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