(Yicai Global) July 23 -- Shares of Allwinner Technology jumped after it was reported that the Chinese chipmaker will join hands with Alibaba Group Holding's semiconductor unit T-Head on products.

Zhuhai-based Allwinner's stock price [SHE: 300458] surged by the daily limit of 10 percent to CNY45.44 (USD6.50) today.

The pair has penned an agreement to develop chips based on T-Head's Xuantie processor series to be used in industrial computing systems, smart homes, and consumer electronics, news portal CNStock reported. They expect to ship 50 million chips in three years.

The first product is expected to be an energy-saving computer chip based on T-Head's XuanTie 906 and 902 processors.

T-Head was spun out of Alibaba’s research institute DAMO Academy in September 2018. It has been embracing open-source instruction set architecture RISC-V in its processor design to enable wide collaboration.

Editor: Emmi Laine