The chip supports the new generation of BeiDou-3 satellites for high-precision navigation and positioning.
Ran Chengqi, vice chief designer of the Beidou network notes the new system boasts more accurate navigation ability.
"We are now building the Beidou-3 system. In addition to its global coverage, its capacity and reliability have been greatly improved. And its positioning accuracy will be doubled or tripled compared with that of the current system," said Ran.
The new system was designed to cover areas involved in the Belt and Road initiative by 2018, a major step towards the final global navigation network with 35 satellites by 2020.
With the development of Beidou system, there have emerged new businesses based on navigation services.
Experts are suggesting the value of the Beidou industrial chain could reach 240 billion yuan within three years.
Yu Xiancheng, director of the Global Navigation Satellite System Association of China, says the industry is promising.
"China's satellite navigation and location-based service are witnessing rapid development. The industry value exceeded 200 billion yuan or about 30.5 billion US dollars in 2016, up 22 percent from 2015. BDS' contribution to the core output accounted for over 70 percent," said Yu.
First launched in 2000, Beidou has been deemed as an alternative to GPS, and it is expected to be more accurate than the latter.
Sun Jiadong, chief designer of the BDS with the China Aerospace Science and Technology Corporation suggests China should develop its own independent satellite navigation technology to ensure information security.
"As an independent country and a major power in the world, China should possess its independent navigation technology. So it developed its own Beidou system to ensure its information security. We proposed that it's necessary to create a good environment where every operator can be compatible with each other, but we should ensure that we have our own independence," said Sun.
Officals have announced that four BeiDou-3 satellites will be launched by the end of this year.
Many believe it will be another stride towards building China's own global navigation network.
