China's Tencent on the Verge of Entering Semiconductor Business? ... Recruiting Chip Design Specialists

Chinese State Media Interprets Tencent's Shift from Indirect to Direct Investment
Expansion in Semiconductor Sector Seen Aligned with National Policy

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese state media has predicted that Tencent, one of China's largest internet companies, may directly enter the semiconductor business.

The Global Times reported on the 16th that Tencent Technology Engineering, a subsidiary of Tencent Group, is recruiting related personnel such as semiconductor chip design and inspection engineers.

The media interpreted this as meaning that unlike its previous method of investing in semiconductor-related startups, Tencent intends to directly enter the semiconductor business. The Global Times reported that Tencent has been investing in China's semiconductor industry, including an 1.8 billion yuan investment in the AI startup Xiuyuan (Nplime Technology). It added that this startup is developing AI-specialized semiconductor chips capable of processing vast amounts of data.

The media cited experts saying that although Tencent is a latecomer in the semiconductor field, its business expansion in semiconductors aligns with national policies. It also noted that major Chinese internet companies such as Baidu and Alibaba have been steadily striving to enter the semiconductor chip market.

The Global Times emphasized that if Tencent formalizes its entry into the semiconductor business, all three major Chinese internet companies known as 'BAT' (Baidu, Alibaba, Tencent) will be involved in the semiconductor business. It also added that ByteDance is planning to develop semiconductor chips as well.

Regarding the background of the entry of China's major internet companies into the semiconductor business, the media pointed to the US-China conflict. The Global Times analyzed that US authorities are implementing policies to suppress the growth of China's internet-related industries, such as banning semiconductor supplies to Huawei, and that semiconductor chips have become the core of new global competition. It also pointed out the necessity of developing in-house semiconductor chips to meet the demand for future advanced industries such as AI and cloud computing.

However, the Global Times evaluated that the semiconductor development technology of Chinese companies entering the semiconductor business is still at an early stage and has not yet reached the level of the United States.

This content was produced with the assistance of AI translation services.