Domestic pioneers join the competition in China's semiconductor market all the time.

"There are definitely competitors in China in different areas. Most of the Chinese companies are still trying to improve their overall security capability and I'm sure that as we go forward, we'll see continued improvement in that," said Clemmer.

"For us, it's about how we can focus on what we provide and make a difference for our customers and if we can continue to have the most advanced technology from a security viewpoint, the ability to drive the connections and to be able to make it easier, then we think that it's good to have competition."

According to Clemmer, the Chinese market is different from mature markets in developed countries.

Between 2010 and 2050, China's work force as a share of the population will probably shrink from 72 percent to 61 percent. Therefore, connected industrial operations will change the qualification profiles needed in manufacturing in the country. Obviously, the demand for engineering and IT skills will increase.

Building on its expertise in high-performance mixed-signal electronics, NXP is driving innovation in the areas of connected cars, cyber security, portables and wearables, and the Internet of Things.

NXP has operations in more than 25 countries and posted revenue of $5.65 billion in 2014.

The company has been operating in China for 30 years and has formed multiple joint ventures and partnerships to deliver secure and connected technology directly to Chinese consumers, including co-operations with Huawei Technologies Co Ltd, Xiaomi Corp and Tencent Holdings Ltd.