TENCENT Holdings Ltd. has unveiled its first chips, showcasing a year-long foray into silicon design as the Shenzhen-based tech giant seeks to grow beyond digital entertainment.

Best known for computer games and social media app WeChat, Tencent has been steadily investing in 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 research and development,” said Tang Daosheng, a senior executive vice president and chief executive of Tencent’s cloud and smart industry group.

He highlighted three chips developed by Tencent at a company event.

These are an artificial intelligence (AI) chip for search and recommendation called Zixiao, another for compressing video files known as Canghai and a chip for high-performance networks that is designated Xuanling. It’s unclear if the chips have already been put into use.

As part of Tencent’s push into enterprise software, Tong pledged US$3 billion worth of resources to help its cloud business partners in the next three years. The company also announced its Orca cloud operating system.

Tencent derives most of its revenue from online content like video games as well as its WeChat super app and the new chips will allow the company to better align with the government’s goals.

The 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 domestic firms overcome U.S. sanctions on the semiconductor industry.

Tencent’s chip move comes after Chinese e-commerce giant Alibaba Group Holding Ltd., a Tencent competitor in China’s market for cloud computing, unveiled a new server chip based on 5-nanometer technology for data centers last month.

Chinese smartphone maker Xiaomi Corp. unveiled its Surge 1 chip for image processing in phone cameras this year. Search leader Baidu Inc. has already produced its AI chips for applications like smart vehicles, while TikTok-owner ByteDance Ltd. is putting together a team to build server chips.

(SD-Agencies)