In May 2003, the Chinese government announced that all WLAN equipment used in China would be required to support its homegrown WAPI encryption standard. In 2006, the WAPI Industrial Alliance was established with support from the government, to speed up the development of WLAN IC in China. Members of the alliance include LHWT Microelectronics, HED (CEC Huada Electronic Design), and Beijing-based RFIC Interated. This report will examine the LHWT, CEC Huada Electronic Design, and RFIC's development in the WLAN IC industry.