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Limited access to high-end semiconductor chips poses a major threat to China’s world-leading smartphone manufacturing industry
Chinese smartphone firms will face an ‘innovate or die’ situation, especially as multinationals look to diversify, industry insiders say

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April 3 marks the 50th anniversary of the first mobile phone call in New York, a moment that revolutionised global communication. In this series, we look at how the devices have reshaped China’s economy and technology. You can read part one here.

Tang Qi, a former phone dealer in Huaqiangbei, one of China’s largest smartphone grey markets in Shenzhen, has witnessed the ups and downs of the handset industry. But one thing is certain: business has always hinged on semiconductor chips.

Now, with the golden years of globalisation seemingly in the rear view, the country’s mobile phone industry is caught in the middle of a tech war that has seen the US and its allies ban exports of semiconductors used to power advanced smartphones, leaving the outlook far from certain.

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