Business

Alibaba jumps to launch custom chips

By Yi Wei Wong

Alibaba Group Holding Limited’s Hong Kong-listed stock boosts the launch of chips designed to strengthen the growing cloud computing business of e-commerce giants in China’s greater impetus for technological independence It has been.

Hangzhou-based company shares recently rose 7.1% to HK $ 176.50 on Wednesday, keeping year-to-date losses at 24%.

Alibaba announced the Yitian 710 chip on Tuesday. It is not sold commercially, but instead, Amazon.com Inc. And Microsoft Corp. It is a power server recently released by the company’s cloud computing unit that competes with.

Alibaba designed the chip based on the architecture of British semiconductor designer Arm Ltd. It is not clear which company will manufacture the chips.

The chip will initially help drive the group’s cloud computing, but may eventually be found for external use, analysts said. “The Alibaba Group is confident that its increased processing power and proven case studies will openly collaborate with external partners working to transform China’s industrial digitalization,” said Citi Research.

Chinese leaders are urging domestic tech companies to develop an independent supply chain that can reduce their reliance on the United States for key components in the global chip shortage. In March, Beijing set a goal of accelerating the development of technologies including semiconductor chips in its 14th five-year plan.

Write to YiWeiWong at yiwei.wong@wsj.com

Alibaba jumps to launch custom chips

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