Chinese tech giant Tencent Holdings Ltd. has announced its first chips in line with its push to expand outside digital entertainment, Bloomberg reported.

  • The latest rollout includes an artificial intelligence chip focused on search and recommendation, one for compressing video files, and another for the networking of cloud servers.
  • Vice President Dowson Tong said chips are the key components of hardware and the core of the industrial internet, as he committed $3 billion in resources to boost its cloud business partners in the next three years.
  • The company generates most of its sales from online content from video games and its WeChat super app. It established the chip unit in 2020, along with the investment in chip startups such as Enflame Technology.

The Chinese government has prioritized tech self-sufficiency, amid the ongoing global semiconductor shortage. TCEHY is up 2.83%.