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One company pushing this approach is five-year-old Sunnyvale, Calif.-based MMC Networks, which makes network processors, geekspeak for smart chips used in high-speed networking hardware switches and routers that helps move data from one network to another.
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Add to that the chips used in cars, smart toys and other appliances bought or made locally, and China's potential becomes huge.But the bigger factor helping China lies on the supply side.
Japan produces 35% of flash memory chips, used in tablet computers and smart phones, about 20% of global semiconductors, and a significant portion of automobile components.
The communications processor business includes the IXP family of network and communications chips used in networking products and Intel's Xscale application chips are used in cell phones, handheld computers, and smart phones.
Chips used to have a single voltage.
Both Intel and AMD are also trying to be smarter about how their chips use power by using software to deliver just enough juice to the chip to get a job done.
They developed and commercialized wireless chips using the "ZigBee" communication protocol that have been built into tens of millions of devices, including smart power meters and high-end entertainment systems.
The smarter way, some industry pundits contend, is using smart chips to control the way data is transmitted.
The American and British intelligence agencies are said to have stolen the encryption key codes to so-called smart chips manufactured by Gemalto, which are used in cellphones, passports and bank cards around the world.
One solution is like car pooling using smart chips to control how data is transmitted.
n Smart chips in everyday things will spread even faster.
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