Breakingviews

Alibaba cloud has silver lining for Chinese chips

1 minute read

A view of the Alibaba Group headquarters in Hangzhou, Zhejiang province, China October 26, 2020. Picture taken October 26, 2020. REUTERS/Aly Song - RC2QQJ90JVKP

Register now for FREE unlimited access to Reuters.com

HONG KONG, Oct 19 (Reuters Breakingviews) - Alibaba (9988.HK) offers a promising glimpse into China's chipmaking potential. The $450 billion e-commerce group on Tuesday unveiled read more a self-developed processor for its fast-growing cloud computing unit. The chip, which will be used to power its own data-centre servers, boasts cutting-edge technology. It's a strategic win if China's top cloud provider is not dependent on U.S. chip designers like Intel (INTC.O). Amazon's (AMZN.O) AWS debuted its own processor three years ago.

Alibaba is part of a growing cohort of technology companies in the People's Republic venturing further into semiconductors, partly spurred by President Xi Jinping's goal of achieving self-sufficiency in high-tech sectors. In August, search-engine operator Baidu (9888.HK) announced it has begun mass production of its artificial intelligence chips, while handset maker Xiaomi (1810.HK) read more is pushing into similar ventures. Alibaba’s efforts will attract the right kind of official scrutiny. (By Robyn Mak)

On Twitter http://twitter.com/breakingviews

Register now for FREE unlimited access to Reuters.com

Capital Calls - More concise insights on global finance:

Klarna rushes to self-regulate before regulation read more

Supply-chain crisis may be nearing its peak read more

French vaccine maker’s gain is Britain’s loss read more

Real estate distress is tricky call read more

Xi Jinping’s COP26 no-show isn’t set in stone read more

Register now for FREE unlimited access to Reuters.com
Editing

Breakingviews
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

More from Reuters