HANGZHOU - Alibaba Group Holding has acquired Hangzhou C-SKY Microsystems Co Ltd, an integrated circuit design house, in a bid to increase its own chip-making capability, Alibaba said Friday.

Founded in 2001, Hangzhou-based C-SKY Microsystems develops embedded CPU and chip architecture. The company said it is the only embedded CPU volume provider in China with its own instruction set architecture.

"The acquisition is an important step for Alibaba's chip development," said Zhang Jianfeng, chief technology officer of Alibaba.

Alibaba said the purchase of C-SKY Microsystems will help unify the two companies' R&D capability amid China's campaign to gain self-reliance in key technology.

Alibaba has previously invested in five chip manufacturers, including US AI chip designer Kneron and Barefoot Networks.