CCID Consulting, which is based in Beijing, said that by next year there will be a talent shortfall of 220,000 people in China's semiconductor industry.

Sensing this shortage, the Ministry of Industry and Information Technology published a guideline in October calling for more efforts to cultivate top-quality engineers.

Roger Sheng, vice-president of research at global consultancy Gartner, said the industry still faces huge challenges, as it takes a long time to complete the trial-and-error process needed to select talent, which is especially important in the chip sector. This protracted procedure calls for long-term, consistent input, he said.

It takes more than just money to achieve breakthroughs in crucial areas, Sheng said, adding, "Talent and time are key."

Zhong Xinlong, a senior consultant at the China Center for Information Industry Development Consultancy, said that due to the restrictions imposed by the US, it is vitally important to strengthen international cooperation on semiconductors with European nations and countries such as South Korea.

"Openness is the soul of the semiconductor industry. Despite the sophisticated international situation, we still need to have an open and inclusive mindset," Zhong said.

Well aware of China's large market, foreign chip companies, including those from the US, are committed to establishing deep bonds with local businesses.

The Semiconductor Industry Association, a group based in Washington that represents this industry in the US, said in a report, "Access to this massive market is essential for the success of any globally competitive chip firm today and in the future."

Frank Meng, chairman of Qualcomm China, said, "We are now more confident than ever that there is an even more room for cooperation between Qualcomm and China's industry partners."

Shen Bo, senior vice-president at Dutch chip-making equipment company ASML, said it would continue to openly support and focus on the Chinese market.

ASML said China would keep playing an integral role in driving development of a highly collaborative global semiconductor industry.