- This development comes as part of the Chinese government’s initiative to boost the domestic semiconductor sector, while also tackling the global tech crisis
- Xiaomi recently came out with its Surge C1 chip
- Alibaba Group launched its Pingtouge chip division in 2018
With the world reeling under the pressure of semiconductor microchip scarcity, many Chinese smartphones, automakers and home appliances companies have begun entering the chipmaking space. This includes companies like Xiaomi and Oppo.
While Xiaomi recently came out with its Surge C1 chip, smartphone manufacturer Oppo has also dived into making its own chips for its handsets, stating that it has developed power management that it uses for a line of in-house flash chargers and is also conducting R&D for radio frequency (RF) and bluetooth chips.
This development comes as part of the Chinese government’s initiative to boost the domestic semiconductor sector, while also tackling the global tech crisis.
Bid to become self-reliant
Chinese search provider Baidu has two chip projects. Its Kunlun division for smart vehicles chips was established in 2018 and secured funding of around $2 billion recently. It will also begin mass-producing its Kunlun Chip II this year.
Meanwhile, Alibaba Group launched its Pingtouge chip division in 2018 after acquiring a domestic startup. In 2019, it came out with its first AI Chip, the Hanguang 800, which the company said it intended for use in its own cloud computing ecosystem.
While many companies have undertaken the move with an aim to become self-reliant, Intralink consultant Stewart Randall says major problems could also arise in the future, “They’re some of the world’s largest buyers of chips so it makes sense to make their own. They’ll either be forced to sell to their competitors or will only be able to sell to themselves.”
Notably, many companies around the world have ventured into the semiconductor industry amidst chip shortages, including Google, Amazon and Facebook.
