A world chip scarcity is affecting numerous sectors of trade from gaming to automotive and cryptocurrency mining.
Amid Bitcoin’s (BTC) ongoing bull run, the crypto mining trade turned massively worthwhile. Many miners began aggressively stacking mining hardware —by generally unconventional methods— which led to shortages in different sectors.
The COVID-19 fueled surge in gaming consoles, computer systems and TVs has even had knock-on effects for automobile producers, who’re main shoppers of silicon semiconductors. Chip shortages have even led Common Motors to shut down three crops and gradual manufacturing at others.
Amid this scarcity, Chinese language web big Baidu is reportedly elevating cash for a standalone synthetic intelligence chip firm.
In line with a Feb. 10 report by CNBC, main enterprise capital corporations like IDG Capital and Golden Gate Ventures, or GGV, are amongst potential buyers in Baidu’s upcoming semiconductor agency. Each IDG and GGV are recognized for notable contributions to the blockchain trade, with IDG backing companies like KuCoin, and GGV supporting million dollar funds for crypto startups.
In line with CNBC, the potential chip firm could be a subsidiary with Baidu as the bulk shareholder. The brand new semiconductor enterprise would purpose to promote chips to clients throughout a number of industries, together with automakers.
Baidu is already working a proprietary chit unit, creating its Kunlun semiconductors. Nonetheless, this unit isn’t sufficient to commercialize its know-how, CNBC mentioned, citing nameless folks conversant in the matter.
Baidu didn’t instantly reply to Cointelegraph’s request for remark.
The most recent information comes amid Baidu’s Nasdaq-traded shares hitting new all-time highs above $295 on Feb. 9. A variety of world semiconductor firms like Nvidia have seen their shares climb just lately.