Why are Apple and Samsung so healthy while everyone else in the handset business is barely getting by? Depending on who you ask you’ll get a different answer, but for me it’s all about being vertically integrated. The more of a widget you own, the more profits you can squeeze out of said widget. Now yes, Apple technically doesn’t make their own components, but they do spend billions of dollars to make sure that the factories they work with have everything they need to fulfill an order.

And then there’s Samsung, who makes everything for everyone, while at the same time learning about where the industry is headed. Don’t you think Samsung knew Apple was going to come out with an iPad and an iPhone when Apple called in an order for some panels, processors, and memory chips? That advanced information, plus their intimate knowledge about component manufacturing, are responsible for where they are today.

Which brings me to China. Huawei only recently started making their own chips, and now, according to EE Times, Lenovo is looking to do the same. Right now Lenovo has about 10 people designing chips for them. They want to increase that to over 100 by the end of this year.

Can 100 people take on the likes of Samsung or Qualcomm or Apple’s team of chip designers? Probably not, but it’s a first step. One needed to secure a healthier future.