Qualcomm Inc., the world's most valued semiconductor company, is preparing for more intense competition in China in 2013 as the country becomes the world's largest smartphone market, Paul Jacobs, Chairman and CEO of Qualcomm, said on January 15.

Chinese customers have the most diversified requirements for smartphones in areas such as online entertainment and social networking, said Jacobs.

The biggest challenge for Qualcomm is to continue to bring down the cost of making chips while increasing new features to meet the diversified needs of Chinese customers.

China became Qualcomm's largest market in terms of revenue in fiscal year 2011. The market contributed more than one third of the company's revenues.

International Data Corp. predicted that the shipment of smartphones in China could hit 300 million in 2013, an increase of 44 percent, and that the total number of smartphone users in China may reach 500 million.