Global chip makers take Chinese boom in their stride

An expanded intellectual property base, economic incentives for manufacturers and internal demand for electronic products will drive China's local chip industry.

The percentage of the world's semiconductors manufactured in China in coming years is expected to increase. Global manufacturers are likely to invest in Chinese manufacturing, with an eye to capturing some of the anticipated rewards, which include better access to the Chinese market and anticipated lower manufacturing costs. At the same time, Chinese companies likely will seek a position in the market for locally consumed products-├╣initially, likely to be consumer electronics--and may ultimately develop and manufacture products for the world...

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