In recent years, the phrase "domestic chips" has garnered increasing attention, especially in the context of China’s ongoing battle to reduce its dependence on foreign technologyAs geopolitical tensions rise, particularly with the United States, the idea of homegrown, self-reliant technology—especially in sectors like semiconductors—has become both a strategic and a patriotic ambitionFor China, the push to develop more "domestic chips" is not just about advancing technological capabilities, but also about reducing vulnerabilities in key industries.

However, when a significant leap was made in this direction, particularly in the smartphone sector, it was met with a rather surprising reaction from the industryThe company at the center of this storm? Qualcomm.

To understand the controversy, we need to start with a recent development from Xiaomi’s sub-brand, POCO

Initially, POCO operated as a subsidiary of Xiaomi but has since evolved into a separate entity with its own product lineupRecently, POCO launched a new smartphone, the POCO C40, which features a domestically-produced chip—the JR510. This 4G chip comes from a Chinese company, Ling Sheng Technology, and its primary target market is overseas, particularly in developing countries.

At first glance, the JR510's use in the POCO C40 might seem like a victory for China’s semiconductor industryAfter all, this is a mid-range chip being marketed to global consumers, especially in regions where affordability and functionality are key selling pointsIt marks a small but important step for China's domestic chips to make inroads into international markets.

But why did Qualcomm—an American company—end up at the center of the criticism surrounding this launch? On the surface, Qualcomm has little to do with this Chinese-made chip

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However, as is often the case in the semiconductor industry, things are not always as simple as they seem.

The backstory to this chip’s creation reveals a more complex web of international cooperation and strategic business decisionsIn fact, the company behind Ling Sheng Technology, which developed the JR510 chip, was founded with the backing of some key players in the global semiconductor and telecommunications sectors, including Qualcomm, Datang Telecom, and Zhilv CapitalWhile most of the company’s shares are controlled by Chinese investors, Qualcomm's involvement in the company's foundation is undeniable.

This raises an interesting and somewhat contentious issueIn a series of funding rounds, Qualcomm continued to play a significant role, investing both capital and expertise into Ling Sheng TechnologyDespite its early backing, the company was mostly funded by Chinese investors, but Qualcomm’s influence remained prominent

This international involvement was not hidden; it was part of the strategy to create a strong domestic chip manufacturer that could eventually take on major global players like Qualcomm itself.

But here’s where things get trickyThe chip in question, the JR510, is a mid-range chip built on 11nm technologyIn a world where many smartphones, especially those targeting global markets, are shifting to more advanced chipsets built on 7nm or even 5nm processes, the JR510 feels outdatedWhile its performance might be adequate for budget smartphones, it hardly represents the cutting edge of semiconductor technologyMany Chinese smartphone manufacturers have already moved on from 11nm chips, opting for more advanced solutions even for their budget lines.

This is where Qualcomm comes into the pictureAs a leading global supplier of advanced chips, particularly in the high-end market, Qualcomm’s reputation and influence loom large

When a Chinese company, with Qualcomm’s early involvement, releases a mid-range chip like the JR510, some critics—especially those in the Chinese tech and semiconductor sectors—feel that Qualcomm’s influence is, in some way, still stifling the full potential of domestic Chinese chip manufacturers.

It’s easy to see why some might be frustratedIf a company with the resources and backing of industry giants like Qualcomm is still producing chips that lag behind the global competition, it might seem like a missed opportunityQualcomm, after all, has the technology, the capital, and the R&D expertise to help push this company forwardThe fact that they are not pushing for more advanced solutions in the Chinese market—especially when they have such a strong foothold in the country—has led some to accuse them of limiting the growth of domestic competition.

But is Qualcomm truly to blame for the slower development of China’s semiconductor industry? The answer is more complicated than simply pointing fingers

While it’s true that Qualcomm could have done more to accelerate the company’s technological progress, it’s also important to understand that Qualcomm has no incentive to help its competitors gain ground in the global marketIn the same way that TSMC (Taiwan Semiconductor Manufacturing Company) is hesitant to share its cutting-edge chip technologies with companies like Intel, Qualcomm has no reason to empower its competitors, especially in a market as crucial as China.

This is not a case of sabotage or malice; it’s simply the reality of competitive businessQualcomm is a key player in the global semiconductor market, and it’s unlikely that they would willingly invest in the development of a Chinese company capable of challenging their market dominanceAfter all, as the old saying goes, "teach a man to fish, and he’ll never need to buy fish again."

Moreover, the Chinese company in question, Ling Sheng Technology, is still in its infancy when it comes to chip development

Despite being established for several years, this is only the company’s second chipFor any new semiconductor company, it’s crucial to establish a strong foundation before scaling up to more advanced technologiesThe JR510 is a modest chip, but it serves as a stepping stoneIf this company were to suddenly release a groundbreaking, next-generation chip, it could have serious implications for the industry—both positive and negativeSometimes, rushing innovation before the company is ready can result in failure rather than success.

In conclusion, while Qualcomm’s role in the early stages of Ling Sheng Technology’s development cannot be overlooked, it is unfair to place the blame solely on the American company for the lack of more advanced chipsChina’s semiconductor industry still has a long way to go before it can truly challenge global leaders in chip manufacturing