Alibaba makes chips for centers

Finance | Reuters and staff reporter 20 Oct 2021

Tech giant Alibaba (9988) said yesterday it has developed a processor that will be used to power servers in its data centers.

That announcement came as another big tech firm, smartphone maker Xiaomi Corp (1810), revealed it is on the way to making its own cars.

The Alibaba development marks the latest foray into semiconductors for the company, mirroring moves by other global cloud computing firms while also dovetailing with Beijing's priority need to boost the chip sector.

Leaders have long urged firms to invest in the domestic chip sector, which is behind the levels of other countries.

Developed by Alibaba's in-house semiconductor unit T-Head, the Yitian 710 chip is based on architecture from UK-based Arm and will not be available for commercial use outside of Alibaba.

Shares of Alibaba rose 1.2 percent yesterday.

At Xiaomi, chief executive Lei Jun said it will be mass producing its own cars in the first half of 2024. That is a major target for the company's fledgling electric vehicle division.

Xiaomi shares jumped 5.4 percent to HK$22.5, the biggest daily percentage rise since May 12 and extending gains for a third straight session.

Rises in major technology stocks including Alibaba and Xiaomi sent the Hang Seng Tech Index higher yesterday, closing 3 percent higher than on Monday. Tech shares also helped the broader Hang Seng Index to rise by 1.5 percent - 377 points - to 25,787.

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