ByteDance, the Chinese firm behind TikTok, is cooperating with Broadcom, a chip designer from the United States, to develop a cutting-edge AI processor. This collaboration aims to ensure a consistent supply of high-end chips in the midst of tensions between the United States and China, according to persons familiar with the situation.
The collaborative project focuses on creating a 5-nanometer application-specific integrated chip (ASIC) that complies with US export laws. The manufacturing would be outsourced to Taiwan’s TSMC, the sources said.
While no public announcements of comparable cooperation have been made since U.S. export limitations were implemented in 2022, ByteDance and Broadcom’s agreement is a notable exception. This action demonstrates ByteDance’s aim of lowering costs while maintaining a continuous supply of sophisticated chips.
Despite continuous research, TSMC does not anticipate to begin manufacturing the new chip this year, with design work moving into the production phase.
ByteDance has also been carefully amassing Nvidia chips, including those barred by previous US sanctions, as well as Huawei’s Ascend 910B processors. The corporation has put significant resources into these acquisitions, demonstrating its dedication to improving AI capabilities.
ByteDance now has many job positions in semiconductor design, reflecting its proactive approach to expanding its chip competence. Amid global supply issues, the company’s efforts in AI development, which are critical for its popular apps such as TikTok and Douyin, remain a top focus.