HONG KONG (BLOOMBERG) – Alibaba Group Holding has unveiled a new server chip that is based on advanced 5-nanometre technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency.
The Chinese tech giant’s newest chip is based on micro-architecture provided by SoftBank Group-owned Arm Ltd, according to a statement on Tuesday (Oct 19).
Alibaba, which is holding its annual cloud summit in Hangzhou, said the silicon chip will be put to use in its own data centres in the near future and will not be sold commercially, at least for now.
“Customising our own server chips is consistent with our ongoing efforts towards boosting our computing capabilities with better performance and improved energy efficiency,” said Mr Jeff Zhang, president of Alibaba Cloud Intelligence and head of Alibaba research arm Damo Academy.
“We plan to use the chips to support current and future businesses across the Alibaba Group ecosystem.”
With the pandemic fuelling increasing demand for cloud services, tech giants worldwide are increasingly seeking more powerful and energy-efficient semiconductors to gain an edge.
Alibaba’s server chip is one of the most advanced by a Chinese firm yet, as it joins global rivals Amazon and Google in gradually replacing offerings from traditional chipmakers like Intel and Advanced Micro Devices with products custom-designed for their data centres and workloads.
The development signals how China’s effort to build a home-grown semiconductor industry is bearing fruit. Chinese President Xi Jinping’s government has made tech self-sufficiency a top national priority, setting aside billions in government funding and offering a wide range of policy support to help local firms overcome United States sanctions on the industry.
Alibaba is one of a number of Chinese firms that have answered Beijing’s call to invest in the development of cutting-edge technologies and manufacturing capacities. Known as Yitian 710, the Arm-based server chip is the third semiconductor introduced by the e-commerce giant since 2019, following an artificial intelligence chip as well as one used for the Internet of Things.
But with limited domestic semiconductor manufacturing capabilities, Alibaba will likely still have to outsource production. While the company did not disclose its manufacturing partner, Taiwan Semiconductor Manufacturing Co and South Korea’s Samsung Electronics are the only two companies capable of mass-producing 5nm chips.
The size of transistors within a chip is measured by nanometres, each equal to one billionth of a metre. By making them smaller, manufacturers can cram in more of them to make semiconductors smaller and more powerful. Apple is among other companies using the leading-edge technology for the chips that power its iPhones and Macs.