In the wake of the United States' stringent chip bans against China, domestic associations have urged businesses to minimize the use of American chips and seek domestic alternatives to prevent supply chain strangulation.

Indeed, some domestic enterprises are now proactively incorporating more domestic chips, while others are intensifying independent chip development efforts to bolster preparedness and mitigate future risks.

Nonetheless, the current landscape of mobile phone chips presents significant challenges. Our reliance on foreign imports stands at an alarming 85%, with domestic chips (excluding MediaTek) accounting for less than 15% of the market.

The data speaks volumes. Below is a chart illustrating the global mobile phone chip manufacturers' market share changes over the past year, compiled by a reputable institution.

Excluding MediaTek, domestic chips are primarily represented by Unisoc and Kirin. By the third quarter of 2024, Unisoc's chip share stood at 11%, and Kirin's at 2%, totaling 13%.

The peak was reached in the second quarter of 2024, with Unisoc accounting for 15% and Kirin for 3%, summing up to 18%. However, these figures remain modest, with Qualcomm, MediaTek, and Apple dominating the market.

Domestic mobile phone brands are undeniably strong. Currently, eight out of the top ten global brands are domestic, with three occupying the top five positions. Apart from Apple and Samsung, the global market is largely dominated by domestic mobile phone brands.

Despite domestic mobile phones accounting for over 60% of the global market share, domestic mobile phone chips only make up about 15% or less. This disparity underscores the magnitude of the challenge.

Upon closer inspection, it becomes evident that, with the exception of Huawei using Kirin chips and Tecno opting for Unisoc chips, other domestic mobile phone brands rely on Qualcomm and MediaTek for their chip needs.

Currently, aside from Huawei, no other domestic mobile phone manufacturer possesses truly self-developed SoC capabilities. Hence, from the perspective of the mobile phone industry, the situation remains dire, and the transition to solely domestic chips faces considerable hurdles.