The Peoples Republic of China (PRC) has been feverishly working on its homegrown Godson microprocessor, with the hope of building its own first petaflop-class supercomputer with the chip in 2010, according to one of the country's senior engineers. China had decided back in the 1990's not to invest in microprocessor development, but changed its mind not long ago and began making inroads into this area.

China’s decision not to make this investment has put it far behind its international rivals in chip development, but it is working hard to catch up. China has produced four Godson processors, the latest being the Godson 2f. STMicroelectronics is the manufacturer and seller of the chips in a deal reached between the two parties last year.

China will complete the design of a new version of the chip, the Godson 2g, next month, which should result in better integration and more functionality on the silicon. Next year it hopes to include graphics capabilities on the same silicon as the main processor, just as AMD and Intel are planning to do.

With its huge population, China can become a significant player in the microprocessor market even if it sells only domestically, he said. "What China wants to do is develop its own technologies so that its manufacturers aren't dependent on paying licenses and other fees to other countries."