China has successfully developed the nation's first indigenous, third-generation, mobile phone chip.

The development of the chip breaks the monopoly multinational firms over the 3-G technology in the world's largest cellular phone market. China Radio International reported Wednesday.

A senior official of the Ministry of Information Industry says the 3-G chip was developed by the Shanghai branch of the Spreadtrum Communications, a leading provider of wireless integrated circuits software solutions.

The development of the chip will slash China's dependence on imported chips, which cost the country 10 billion dollars annually. Chips account for 50 to 70 percent of the cost of the phones.

China has more than 300 million cell phone users - the largest in the world.

A number of China's mobile phone companies have already signed agreements to use the so-called "China chip".

(CRIENGLISH.com)