China has successfully developed a mobile phone chip, according to a senior official with the Ministry of Information Industry, quoted in the Chinese press.

The new 3G (third-generation) standard mobile phone chipset was developed by the Shanghai branch of the Spreadtrum Communications Inc, a provider of wireless integrated circuits software solutions. The development is hoped to decrease Chinese companies' dependence on foreign intellectual property and significantly lower the amount of intellectual property fees paid to foreign communications firms.

In the market, a single chipset is sold US$25 to 50, making up 50-70 % of the cost of the phones. Chinese cell phone makers pay more than US$10 billion to import chipsets. China's cellphone maker giants like Amoi, Bird, Lenovo and Hisense have already signed agreements with some Chinese chip makers, a step that they will use the so-called "China chip" to produce mobile phones.