(Yicai) Feb. 9 -- Chinese semiconductor developer Shanghai Fortune Techgroup has enlisted CyweeMotion HK to come up with an artificial intelligence algorithm for its chips.

Shanghai Fortune will pay CNY3.5 million (USD487,000) to CyweeMotion for an AI algorithm for its chips used in augmented and virtual reality devices, smart wearables, and machine learning equipment, the company announced late yesterday.

CyweeMotion will purchase USD7.9 worth of the above three types of chips from Shanghai Fortune’s Hong Kong unit to develop the AI algorithm software, Shanghai Fortune added.

With almost 20 years of experience in developing AI algorithms, CyweeMotion provides solutions to world-famous makers of AR and VR devices, smart watches, and headsets as well as sensor suppliers.

Shanghai Fortune aims for a long and steady collaboration with CyweeMotion on chip procurement and sensors intelligent algorithm development, as the pair’s work on AI algorithms that started in 2022 finally enters the commercial development stage, it noted.

Shanghai Fortune’s chips have customer and technological advantages in multiple fields, such as smart home, AI-based voice recognition, and smart wearables.

Shares of Shanghai Fortune [SHE: 300493] soared 13.4 percent to close at CNY5.26 (73 US cents) in Shenzhen yesterday. The stock is still down 38 percent since the end of last year. Chinese markets are closed today for the lunar new year holiday.

Editor: Futura Costaglione