Alibaba Group Holding Ltd. unveiled a new server chip that’s based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency.

The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp.-owned Arm Ltd., according to a statement Tuesday. Alibaba, which is holding its annual cloud summit in Hangzhou, said the silicon will be put to use in its own data centers in the “near future” and will not be sold commercially, at least for now.

“Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better performance and improved energy efficiency,” said Jeff Zhang, president of Alibaba Cloud Intelligence and head of Alibaba’s research arm Damo Academy. “We plan to use the chips to support current and future businesses across the Alibaba Group ecosystem.”