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Pingtouge

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2018: Creation of the company as a part of Alibaba Group

On September 19, 2018 Alibaba Group announced creation of semiconductor division — Pingtouge. The Chinese Internet giant decided to be engaged in development of own processors to reduce dependence on foreign technologies. Besides, the initiative reflects the aspiration of Alibaba to continue strengthening of positions in the markets of cloud services and Internet of Things.

Within new business of Alibaba in which from 200 to 300 people will be engaged, it is going to create chips with elements of artificial intelligence for the devices connected to the Internet, the equipment for functioning of cloud services and other purposes.

Alibaba created semiconductor business

According to the technical director of Alibaba Jeff Zhang  (Jeff Zhang), advantages of the company regarding algorithms and work with data allow it to reach "unique position to make real technology breaks in such revolutionary areas as quantum computings and technologies for chips".

Before Pingtouge start the Alibaba company invested in several chipmakers. So, in 2018 the Chinese developer of chips C-Sky Microsystems was purchased.

According to Jeff Zhang, the first processor with artificial intelligence of Alibaba is going to release in the second half of 2019. The chip will be called AliNPU and should find application in unmanned vehicles, systems for the "smart" cities and "smart" logistics.

Besides, the company began development of quantum processors and expects to bring them to the market in two-three years.

Alibaba allows transformation of semiconductor "daughter" into the independent company. The project investment cost does not reveal.

In April, 2018 the cofounder and the chairman of the board of directors of Alibaba Jack Ma urged China, Japan and other countries to develop own semiconductor technologies as, according to the entrepreneur, the market of chips is controlled by the USA. In Celestial Empire the government actively supports local developers of chips.[1]

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