Actions plans partnership with companies for things such as LTE. Zhou said that it aims to increase its 6.7% marketshare. Its primary competitors in the white-box tablet race are Rockchip and Allwinner, but he expects MediaTek to become a big player this year, too. Additionally, the Chinese government is pouring billions into semiconductors, spawning more competition.
"China has a big domestic market -- 1.3 billion people, a quarter of the market. They like to buy the newest and best electronic devices. It has the biggest established manufacturing chain, and the Chinese semi business will take advantage of that," he said. "You'll see a lot of fabs in China. Every major province is trying to get a fab."
It's unclear how Actions, as a fabless company, stands to benefit from an increased number of fabs or -- as Zhou expects -- consolidation of the fab industry.
"After 40 nm, the investment in semi equipment is so huge there's not anyone, not even TI or Qualcomm, who can afford it. I don't think that trend can be reversed. Fabless is the way to go," he said. "There could be other trends like integration between a software or a systems company with a fabless design company. There's a lot of value in this kind of vertical integration."
— Jessica Lipsky, Associate Editor, EE Times