More chipset vendors in China, including Allwinner Technology, Rockchip Electronic and Amlogic, have been ramping up solutions to tap the booming global tablet market, which is expected to top 240 million units in 2013, according to industry sources.

The production value of China-based IC suppliers is likely to surpass the amount rolled out by rival makers in Taiwan in 2015, making China the second largest IC supplier around the globe trailing only after the US, the sources noted.

Local chipset suppliers in China have already taken nearly the whole solution market for entry-level tablets, indicated the sources, adding that the A10 solutions from Allwinner are mostly adopted by white-box markets for the production of 7-inch entry-level tablets.

The China government has been offering incentives to local IC suppliers since 2009, aiming to establish an IC design industry that can generate total profits of CNY10 billion (US$1.63 billion) in 2014 and reach a self-efficiency rate of 30% for all IC parts in China in 2015, the sources indicated.

Although MediaTek has managed to win tablet chipset solution orders from a number of branded and white-box tablet makers in China and is expected to see its tablet solution shipments reach 20-25 million units in 2013, the Taiwan-based chipset vendor is facing increasing competition from rival makers in China, commented the sources.

The FOB prices of 7-inch tablets built with MediaTek's chipset solutions and with a built-in 3G module are currently available for US$70 compared with US$40 for comparable models built with Allwinner's solutions, the sources noted.

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