China’s e-commerce giant Alibaba is being forced to develop its own processor chips by its communist party, despite the fact that it is an expensive business and will create a big financial burden. This move is to make China self-reliant and technologically superior and advanced in making its own chips.
However, Alibaba says that it does not plan to sell its chip to outsiders for now, nor has a plan to make chip units. However, other competitive brands like Tencent and Xiaomi are competing to develop highly advanced and flawless, multi-visionary electric chips. They also promise billions of dollars to create computing, clean energy, and other technology which can build China’s wealth and global influence.
China’s President Xi Jinping said in a speech in March “Self-reliance is the foundation for the Chinese nation”. He also added that China should become a technology superpower to safeguard national economic security.
China wants to stop its dependency on other technological giants, mainly from Japan and U.S. for its chip requirement, as the chip is the main component in making smartphones, automobiles, and other electronic devices. The country experienced a cut in chip manufacturing during the pandemic, but now it looks at making itself a major chip production country by deliberate production.
China’s ideology of self-sufficient in chip-making is not supported by technical experts and businessmen. Hence, if it cuts trade with other countries, the country will be in trouble as it won’t be able to produce a competitive edge in the global market, reported a source.
