Chinese Technology giant Tencent Holdings announced on Monday that its self-developed video transcoding processor Canghai has started mass production and is now enabling services like cloud gaming and video live streaming.

The Shenzhen-based business, which is best known for the widely used messaging app WeChat, claimed in a post that tens of thousands of its Canghai chips, which were initially shown in 2021, have been helping customers in industries including cloud gaming and live video streaming.

According to the article from the business, the Canghai chip “focuses on solving the impossible triangle of high image quality, low latency, and low cost in video encoding and decoding.”

Tencent, which is primarily renowned for its software, announced three self-designed chips in 2021, joining other major Chinese internet companies in responding to Beijing’s request for assistance in building China’s own semiconductor industry in the face of an increasing number of U.S. sanctions.

In addition to Canghai, Tencent has also created the Zixiao artificial intelligence chip and the Xuanling network interface controller chip.

The business declared, “Tencent has a long-term plan to research, develop, and invest in semiconductors.”

“Numerous chips have made a scale entry into the market.”

The corporation claimed that their Zixiao AI inference chip, which attempts to increase processing efficiency, has been used to manage internal business.

The business is now using its Xuanling chip to “build the next generation of high-performance network infrastructure”.