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China is scrambling to turn itself into a chip-making titan

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A researcher works on a semiconductor wafer at Tsinghua Unigroup's research center in Beijing.   © Reuters

TAIPEI When Chinese President Xi Jinping talked in April about how his country can foster new tech, he encouraged Chinese companies to work together to build a domestic chip industry.

Three months later, senior executives from 27 leading Chinese tech companies and research institutions -- including Huawei Technologies, Lenovo Group, ZTE and Tsinghua Unigroup -- formed the "high-end chip alliance." Its goal is in line with Xi's vision: to make inroads into a domestic market worth over $100 billion annually and eventually tap into the $300 billion global market.

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