After announcing its very own neural network chip, Alibaba has made another step towards strengthening its new AI chips business. The e-commerce giant announced on April 20th that it will fully acquire local chip designer C-SKY (ไธญๅคฉๅพฎ), according to QQ News.
โAcquiring C-SKY is an important step for Alibabaโs microchip layout,โ said Alibabaโs CTO Jeff Zhang (Zhang Jianfeng). Zhang added that IP core is the heart of basic chip capability and that entering the field of IP core means realizing an โautonomous, controllableโ foundation for Chinaโs chips. In electronic design, an IP core refers to a chip layout design that is the intellectual property of one party.
Hangzhou C-SKY Microsystems is an integrated circuit design house. The company has developed 7 types of CPUs covering applications including IoT, digital audio and video, information security, network and communications, industrial control and automotive electronics.
This is Alibabaโs first takeover in the chip business although the e-commerce giant has so far invested in several chip companies. On April 19, the company announced its own Ali-NPU chip which will provide services for businesses through the Ali Cloud.
News of Alibabaโs foray into chip design comes at a particularly turbulent time after US Department of Commerce put a seven-year ban on US companies selling components to Chinese state-owned ZTE. Network communications equipment manufacturer ZTE heavily relies on imports of US-made chips.
China has been lagging behind US chipmakers: in 2016, the country imported $230 billion worth of chips. However, thanks to its AI development plan and the โMade in China 2025โ industrial upgrade plan, China has been slowly increasing its self-sufficiency in chip manufacturing. In 2014, the government set up a subsidy program called Chinaโs National Integrated Circuits Industry Investment Fund which is aiming to raise at least RMB 150 billion for its second fund vehicle, according to Bloomberg.
The US has been wary of China acquiring chip technology. In September last year, President Trumpโs administration blocked the sale of US-based Lattice Semiconductor to Canyon Bridge Capital Partners, backed by China Venture Capital Fund over national security concerns.
Questions have also arisen over the future of Alibabaโs cloud service Ali Cloud in the US. Certain commentators believe that the US will retaliate against Beijingโs requirement that foreign cloud-computing firms, such as Amazon and Microsoft, form joint operations with Chinese companies and license their technology.
