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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