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Apart from professional dealers who have years of experiences, some domestic amateurs are trying to bring rare investment collections to common music lovers in China.

Another factor triggering the speeded-up capacity expansion is the domestic regulation threshold of 8 gWh annual capacity, which was set by the Ministry of Industry and Information Technology in November 2016, according to sources who declined to be named.

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Another reason for the contraction was the fast growth of knowledge-intensive exports, a typical reflection of China's economic transition and high-tech development, Lian said.

Apart from chips, the domestic memory industry is also on the rise. At present, Samsung, Toshiba, SK Hynix and SanDisk hold a combined 85 percent share in the global flash memory market, and domestic brands only account for 8 percent. However, 70 percent of global demand for flash memory chips comes from domestic companies, so there is huge growth space for domestic chip makers.