A model of the Beidou navigation system is displayed during the 9th China International Aviation and Aerospace Exhibition, known as Airshow China 2012, in Zhuhai, Guangdong province, 13 November 2012. [Photo/IC]

The 40-nanometer chip, developed by Shanghai Beiga Satellite Technology Co, was revealed at an exhibition event in Shanghai that promotes civilian use of military technologies.

Wang Yongping, general manager of Beiga, said they are currently doing test work with some smartphone, who are expected to begin mass production of devices with the chip next year, according to a report by China News Service.

The chip is a sign that China's independently developed Beidou System will be applied to consumer electronics field. Previously, chips using the Beidou system were too large and had high energy consumption in daily use.

According to the company, the chip can also be used on tablet computers and wearable devices.