(Reuters) — E-commerce titan Alibaba Group Holding has purchased a Chinese microchip maker to additional its cloud-based “internet of things” (IoT) enterprise, underscoring its dedication to the chip trade, an Alibaba spokeswoman stated on Friday.
The announcement comes days after the United States banned American companies from promoting chips and different parts to Chinese telecoms firm for seven years, a transfer that rekindled dialogue in China in regards to the want for self-sufficient tech provide chains.
Senior Chinese officers held conferences this week with trade our bodies, regulators and the nation’s highly effective chip fund about dashing up already aggressive plans for the sector within the wake of the ZTE ban, two individuals with direct information of the talks instructed Reuters.
“Alibaba aims to empower different industries through our cloud-based IoT solutions, in which chips play a significant role,” the spokeswoman stated in an announcement.
“The acquisition of Hangzhou C-SKY Microsystems, a leading Chinese supplier of embedded CPU cores, underlines our commitment to driving the development of the chip industry,” she stated, referring to central processing models.
Alibaba didn’t disclose the phrases of the acquisition – the agency’s first involving a chipmaker.
The Chinese e-commerce large had beforehand invested in Hangzhou C-SKY Microsystems and was now taking its stake to 100 p.c, in step with an curiosity within the chip trade articulated late final 12 months, stated an individual accustomed to the matter who declined to be recognized because the matter was non-public.
The individual didn’t imagine the acquisition was linked to present commerce tensions between China and the United States involving tit-for-tat tariffs.
(Reporting by John RuwitchEditing by Christopher Cushing)