China's failing economy is worrying some U.S. chip makers because of their potential to lose business on the second largest economic zones worldwide.

According to Technology News Asia, Qualcomm Inc. is one of the most affected industry as they have seen a rapid fall of the Chinese economy while the demand of consumers for mobile devices have slowed down. In a statement by Christopher Rolland, an analyst at FBR Capital Markets and Co., he said that when a failing economy is accompanied by a situation, wherein the demand fails to achieve what is expected and continues to go underwater, a business will not flourish. A U.S. chipmaker such as Qualcomm is reportedly starting to feel the effect.

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In China, some of the biggest chip makers include Broadcomm Corp and Qualcomm, both of which decline to make any comments about the struggle to keep their business in China. Apple Inc. also chose not to comment on the crisis. Broadcomm and Qualcomm also did not disclose their financial standing, but the latter is said to produce 24 percent of their industry in China, and Qualcomm operates about 50 percent of their business in China. The decline in chip making business was on the verge of a breakdown when the Chinese economy started to fail.

Cirrus Logic Inc., a supplier of integrated circuits for automotive and audios, however, had an 80 percent rate of production in China alone, but the figure only showed the percentage of supply demanded and not the actual sales of its products.

Investors, on the other hand, said that other chipmakers in U.S. and its European counterparts like Intel could largely benefit from China's semiconductor industry, which they are trying to promote globally.

Apple Inc. has earned 17 percent of its revenue from China last year and for the first time, the last quarter of this year was their biggest iPhone market in China where it surpassed its sales in the United States. This however, did not pacify the fact that China's slow economy is affecting chipmakers, not only in the United States but all over the world.

Tagsus chip makers, Qualcomm, economic crisis