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CHINA BRIEF | Alibaba teams up with Allwinner to produce 50 million chips

The hardware will be based on Alibaba’s XuanTie processors.

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Alibaba (NYSE:BABA) confirmed with KrASIA on Wednesday that integrated circuits designer Allwinner Technology (SHZ: 300458) is set to develop chips based on XuanTie processors—made by the e-commerce giant’s semiconductor unit Pintouge.

Fabless firm Allwinner and Pintouge, also known as T-Head in English, plan to ship 50 million chips in three years, which can be used in industrial control, smart home, and consumer electronics.

Pingtouge released its first processor, the XuanTie 910, in July last year, which the firm claimed could lower the costs of related chip production by more than 50%, KrASIA reported.

Allwinner and Pingtouge’s cooperation will first start from XuanTie 906 and XuanTie 902 processors, which perform worse than the XuanTie 910, and later expand to other processors.

Earlier than this, Pingtouge released its first chip, the Hanguang 800, an AI inference chip, in September 2019, for Alibaba’s internal use only.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.