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Chinese chip makers ride wave of low-cost tablets

Michael Kan | Dec. 19, 2013
Qualcomm and Nvidia get most of the headlines in the mobile chip business, but two Chinese vendors are cornering the market for processors used in low-cost tablets, and in 2014 they might find their way into a product near you.

They also face some competition. While Taiwan's PC makers have been suffering, one company there in particular, MediaTek, is also winning deals in the low-cost tablet market, and in November it released its own eight-core processor.

Some observers believe Chinese firms will also face legal obstacles. Patent lawsuits have become one of the primary competitive weapons in the mobile business, and Chinese firms may face lawsuits from competitors challenging their ownership of intellectual property, Sheng said.

Allwinner says its confident it can compete with the leading chip vendors. Its location near Shenzhen, where many tablet manufacturers are based, means it's close to its customers, Ben El-Baz said, and gives it a "keen sense" of the market's demands.

 

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