Quanzhou's walkie-talkie industry, once constrained by dependency on foreign technology, is experiencing a renaissance driven by breakthroughs in indigenous chip development. The transformation began in earnest after the city signed seven major digital economy projects worth 6 billion yuan ($827 million) at this week's 8th Digital China Summit in Fuzhou, accelerating its push to become a national leader in professional communications equipment.
The sector's turning point came through Litong Technology's strategic relocation from Shenzhen to Quanzhou, bringing cutting-edge communication chip expertise to the city's established manufacturing base. Known as China's 'walkie-talkie capital' with 70% domestic market share, Quanzhou's Nan'an district had struggled for decades with costly imported components and patent barriers. "Before 2015, we could produce everything except the core chips and radio protocols," explained a local industry representative, speaking anonymously about previous technological limitations.
Litong's proprietary A8 System-on-Chip now powers over 40 million devices annually—a sixfold increase since 2008. This third-generation innovation combines digital baseband and radio frequency functions while circumventing foreign patent restrictions through its ADR protocol, significantly reducing production costs. Municipal data reveals that domestic chip adoption enabled monthly output to surge from 10,000 units to 500,000 within a decade.
Recent regulatory changes, including new frequency-use guidelines from the National Radio Administration, have further positioned Quanzhou as a hub for secure digital communication solutions. Analysts suggest this vertical supply-chain integration—from chip design to final assembly within Fujian Province—could serve as a blueprint for other Chinese industries eyeing technological self-reliance.
