Benzinga | Nov 3, 2021 09:20AM EDT

Alibaba's Cloud Computing Competitor Highlights Chip Development Progress

* Computer games and social media app WeChat owner Tencent Holdings Ltd (OTC:TCEHY) is offering a rare public glimpse of its R&D initiatives on semiconductor chip development and investment, Reuters reports.

* Tencent has been steadily investing in the research and development of semiconductors along with other Chinese tech firms.

* "Facing scenarios with strong business needs, Tencent has had a long-term plan and investment for chip R&D," Tencent posted.

* Tencent's cloud and smart industry group CEO Tang flagged advances in three directions at a company event.

* Tencent highlighted three chips developed by Tencent, including a chip for AI computing called Zixiao, another for video processing, known as Canghai, and a chip for high-performance networks named Xuanling.

* Tencent also announced its Orca cloud operating system.

* Chinese e-commerce firm Alibaba Group Holding Ltd (NYSE:BABA), a competitor in China's market for cloud computing, showcased a new server chip for data centers in October.

* Chinese smartphone maker Xiaomi Corp (OTC:XIACF) (OTC:XIACY) revealed its Surge 1 chip for image processing in phone cameras in 2021.

* Related Content: Weighing The Cons Of Alibaba's Chip Development

* Price Action: TCEHY shares traded higher by 2.90% at $60 in the premarket session on the last check Wednesday.