[seanmcdirmid]

Just to be factual, China outside of Taiwan still lacks the ability/technology to fab a modern microprocessor using a competitive process. Fab technology is incredibly restricted, not just by governments but the companies themselves.

China doesn't export CPU processors, they import from Intel like everyone else. I believe there is a fab in Singapore, but I'm not sure what generation they are at. There is a testing facility in chengdu, at least.

[igravious]

Intel, though globally important, are not the only game in town.

This article suggests that there are numerous Chinese companies trying to make the grade: "Semiconductor Manufacturing International (SMIC), Shanghai Huali Microelectronics (HLMC), Shanghai HuaHong NEC Electronics Company (HHNEC), Grace Semiconductor Manufacturing and Advanced Semiconductor Manufacturing (ASMC)"

http://qz.com/72542/china-just-surpassed-the-us-in-semicondu...

> "McKinsey’s proprietary research indicates that more than 50 percent of PCs, and between 30 and 40 percent of embedded systems (commonly found in automotive, commercial, consumer, industrial, and medical applications), contain content designed in China,"

http://www.mckinsey.com/insights/high_tech_telecoms_internet...

> "Compared to 2008, consumption of semiconductor materials in North America is down $250 million to $4.74 billion, while in China consumption has shot up 42% to $5.07 billion."

[seanmcdirmid]

Sure, they are putting out cheap low-end chips that are getting used.

But they are still way behind on process. I believe its 35-50 nm, while Intel, the Koreans, and the Taiwanese right now are at 14 nm. If you are building the world's fastest super computer, you are putting Intel or similarly fabbed chips in there...they are not putting their own chips in!

Then there is also the problem of having their own designs to fab. There was a big scandal a few years back where the "native microprocessor" was actually based on an old design that some professor stole from a company in the states!