China’s ByteDance is partnering with U.S. chip designer Broadcom to develop an advanced AI processor, according to two sources familiar with the matter. This collaboration aims to ensure TikTok’s owner secures a sufficient supply of high-end chips amid ongoing U.S.-Sino tensions.
The processor in development is a 5-nanometer application-specific integrated chip (ASIC) that will comply with U.S. export restrictions. The manufacturing work will be outsourced to Taiwan’s TSMC, the sources added.
Since Washington introduced export controls for cutting-edge semiconductors in 2022, there have been no publicly announced collaborations between Chinese and U.S. companies involving such advanced technology. Most U.S.-China deals in the semiconductor sector involve less sophisticated tech.
ByteDance’s partnership with Broadcom, an existing business partner, is expected to significantly reduce procurement costs and ensure a stable supply of high-end chips, according to the sources, who declined to be identified due to the sensitivity of semiconductor issues in China.
Despite the progress, TSMC is not expected to start manufacturing the new chip this year. One source mentioned that while the design work is progressing, the “tapeout” – marking the end of the design phase and the beginning of manufacturing – has not commenced.
ByteDance and Broadcom have not responded to repeated requests for comment, while TSMC also declined to comment.
ByteDance, like many global tech firms, has embarked on a major push into generative artificial intelligence. However, the company faces a more limited supply of AI chips compared to its overseas counterparts due to U.S. export controls aimed at hindering AI and supercomputing advancements by China’s military.
ByteDance and Broadcom have been partners since at least 2022. ByteDance has previously purchased Broadcom’s Tomahawk 5nm high-performance switch chip and Bailly switch for AI computer clusters, as publicly stated by Broadcom.
Securing AI chips is crucial for ByteDance to enhance its algorithms. In addition to TikTok and its Chinese counterpart Douyin, ByteDance operates several popular apps, including Doubao, a ChatGPT-like chatbot service with 26 million users. To support its AI ambitions, ByteDance has stockpiled Nvidia chips, including those available before U.S. sanctions and chips made specifically for the Chinese market.
ByteDance also purchased Huawei’s Ascend 910B chips last year, according to two separate sources. The company currently has numerous semiconductor-related job openings and has been recruiting top talent from other Chinese AI chip firms, one source with direct knowledge of the matter said.