Baidu reportedly aims to address chip shortage plaguing gaming, crypto and cars
Baidu is reportedly planning to commercialize its chip technology by setting up a dedicated subsidiary backed by crypto-friendly venture capital firms.
A worldwide chip lack is influencing different areas of industry from gaming to car and digital currency mining.
In the midst of Bitcoin's (BTC) continuous bull run, the crypto mining industry turned out to be greatly productive. Numerous excavators began forcefully stacking mining equipment — by here and there unusual techniques—which prompted deficiencies in different areas.
The COVID-19 powered flood in gaming consoles, PCs and TVs has even had thump on impacts for vehicle makers, who are significant buyers of silicon semiconductors. Chip deficiencies have even driven General Motors to close down three plants and moderate creation at others.
In the midst of this deficiency, Chinese web monster Baidu is supposedly fund-raising for an independent man-made brainpower chip organization.
As indicated by a Feb. 10 report by CNBC, significant funding firms like IDG Capital and Golden Gate Ventures, or GGV, are among expected financial backers in Baidu's impending semiconductor firm. Both IDG and GGV are known for remarkable commitments to the blockchain business, with IDG backing organizations like KuCoin, and GGV supporting million dollar assets for crypto new companies.
As indicated by CNBC, the potential chip organization would be an auxiliary with Baidu as the larger part investor. The new semiconductor business would intend to offer chips to clients across a few ventures, including automakers.
Baidu is as of now running a restrictive chit unit, building up its Kunlun semiconductors. In any case, this unit isn't sufficient to market its innovation, CNBC said, refering to mysterious individuals acquainted with the matter.
Baidu didn't quickly react to solicitation for input.
The most recent news comes in the midst of Baidu's Nasdaq-exchanged offers hitting new unequaled highs above $295 on Feb. 9. Various worldwide semiconductor organizations like Nvidia have seen their stocks climb as of late.