Smartphone vendors turn to chip sector for cutting edge

Companies spruce up R&D capabilities, bullish on long-term earnings prospects

An increasing number of Chinese smartphone vendors are marching into the chip sector, after realizing the importance of in-house research and development capabilities for the semiconductor sector.

Vivo, a major smartphone vendor, for instance, joined hands with South Korean tech giant Samsung to unveil a 5G chip in November, marking the former's latest push to showcase its increasing emphasis on enhanced research and development capabilities.