China develops 3G chip

August 26, 2004

China has successfully developed the nation's first 3G mobile phone chip according to local media reports. The announcement was made by a senior official with the Ministry of Information Industry.

The Shanghai branch of Spreadtrum Communications, a provider of wireless integrated circuits software solutions, was credited for developing the new 3G mobile phone chipset.

Previously, China's mobile phone makers had to rely on foreign intellectual property. With the introduction of the new chip, firms will be less dependent on foreign firms and significantly lower the amount of intellectual property fees paid to foreign communications firms.

A single chipset, which sells between $25 to $50, accounts for 50 to 70% of the cost of mobile phones. Chinese cell phone makers pay more than $10 billion to import chipsets.

A number of Chinese mobile phone giants have expressed interest in using the so-called "China chip" in producing mobile phones.