China’s leading e-commerce firm Alibaba Group has acquired Chinese an integrated circuit design house, C-SKY Microsystems to expand its chip development capabilities. Yet, the Chinese e-commerce firm has not revealed acquisition deal in details.

An Alibaba spokeswoman said on Friday, “Alibaba aims to empower different industries through our cloud-based IoT solutions, in which chips play a significant role. The acquisition of Hangzhou C-SKY Microsystems, a leading Chinese supplier of embedded CPU cores, underlines our commitment to driving the development of the chip industry.”

The company stated that has developed 7 types of embedded CPUs covering a wide range of embedded applications such as digital audio & video, information security, network and communications, smart devices in the Internet of Things and many more. Sources stated that Alibaba’s DAMO Academy is developing a neural network chip for image analysis and machine learning.

Chief technology officer of Alibaba, Jeff Zhang said, “The acquisition of C-SKY Microsystems is an important step for Alibaba’s chip development.” The e-commerce company began building up an AI chip called Ali-NPU and it is for video recognition, cloud computing, image recognition to enhance its processing power and to diminish the cost.