The inside of a ZTE smart phone is pictured in this illustration taken April 17, 2018. REUTERS/Carlo Allegri/Illustration
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China has long pushed the development of high-end semiconductors as a key strategic objective.Senior Chinese officials are increasingly concerned about stalling efforts to improve domestic chip design, seen as critical after a series of failed outbound deals, according to two industry insiders familiar with the matter.China has made chip development a key plank of its Made in China 2025 drive to bolster its strength in technology against more developed rivals in the United States, Japan and Europe. The government wants local chips to make up at least 40 percent of China's semiconductor needs by the middle of the next decade.A Chinese deal for the U.S. semiconductor testing company Xcerra Corp was shot down by a U.S. national security panel in February, while the $1.3 billion acquisition of the U.S. chipmaker Lattice Semiconductor Corp was blocked last year.Interviews with half a dozen China chip suppliers, business groups, investors and analysts suggest that despite heavy investment and rhetoric, China is behind schedule in developing high-end chips, or integrated circuits.China has made more progress on lower-end chips, people said.
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