Alibaba is setting up its own company to make computer chips as China seeks to cut its dependence on foreign technology.

The biggest technology company in China announced on Wednesday that the new business would start developing artificial intelligence chips for cloud computing, internet-connected devices and other sectors.  Alibaba, earlier this year bought over C-Sky, a Chinese chip design firm because of the struggling rival with the foreign ones.

Strong emphasis has been made on China’s reliance on foreign-made chips by Jack Ma, Executive Chairman  of Alibaba, which makes them dependent and remain a subject to dictatorship to the foreign producers. America controls the market for the chips and they can suddenly decide to hoard the sales at anytime or probably increase the price which everyone has no choice but to comply with. If this should happen the outcome would definitely not be friendly economically. Basically that should be enough triggering factor to embark on this project in China and also a public announcement to other countries to start producing Computer Chips because the more producers we have in the market the lesser the price and the better the competition.

Looking at the bright side, how competitive can China get with the US Computer Chips?

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