Smartphone maker Xiaomi has joined a rush of Chinese tech companies venturing into the semiconductor sector, announcing on Wednesday a new chip to help smartphone cameras process images.
The initiative has become ever-more critical, with a global chip shortage crimping supplies and U.S. sanctions hobbling Huawei Technologies Co Ltd, once China's top smartphone maker and for a time the only company capable of producing high-end smartphone processors. Large Chinese internet companies, by comparison, have focused their efforts toward cloud computing and artificial intelligence, targeting a market dominated primarily by Intel Inc and Nvidia Corp.
Alibaba Group, meanwhile, 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 self-developing chips could help companies reduce costs and improve performance, it could pose long-term economies of scale problems, says Stewart Randall, who tracks the semiconductor sector at consultancy Intralink.
ECARX, an auto tech startup backed by Geely's chairman and Baidu, plans to supply products with 7 nanometer chip as early as next year through its joint venture with Arm China.
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