New York: ByteDance, the Chinese tech giant behind TikTok, is collaborating with US chip designer Broadcom to develop a cutting-edge AI processor, sources familiar with the matter revealed. This strategic move aims to ensure a stable supply of high-end chips amidst escalating US-China tensions.
The customized 5-nanometre chip, categorized as an application-specific integrated chip (ASIC), will comply with US export restrictions. Manufacturing will be outsourced to Taiwan Semiconductor Manufacturing Company (TSMC), according to the sources.
Publicly unannounced until now, this partnership marks a rare collaboration between Chinese and US companies on advanced semiconductor technology since the imposition of stringent US export controls in 2022. Typically, US-China agreements in this sector focus on less sophisticated technologies.
Sources, speaking on condition of anonymity due to the sensitive nature of semiconductor issues, highlighted that ByteDance’s alliance with Broadcom, an established partner, aims to reduce procurement costs and ensure a consistent supply of high-quality chips. However, TSMC is not expected to commence production of the new chip this year, with design work currently in progress and manufacturing yet to begin.
ByteDance and Broadcom declined to comment on the collaboration, while TSMC refrained from making any statements.
ByteDance, like many global tech firms, is intensifying efforts in generative artificial intelligence. However, Chinese companies face significant challenges in accessing AI chips compared to their international counterparts. US export controls restrict access to Nvidia’s advanced chipsets, crucial for applications in AI and supercomputing, which are deemed sensitive to China’s military.
The collaboration between ByteDance and Broadcom dates back to 2022, with ByteDance procuring Broadcom’s Tomahawk 5nm high-performance switch chip and Bailly switch for AI computer clusters, as confirmed by Broadcom in public statements.
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Acquiring AI chips is pivotal for ByteDance to enhance the capabilities of its algorithms across platforms like TikTok, Douyin (the Chinese version of TikTok), and Doubao—a chatbot service similar to ChatGPT, boasting 26 million users.
To bolster its AI capabilities, ByteDance has reportedly amassed Nvidia chips, including models acquired prior to and during early stages of US sanctions, amounting to a significant investment of $2 billion last year. Additionally, ByteDance sourced Huawei’s Ascend 910B chips in 2023.
ByteDance’s aggressive stance in the semiconductor arena is evident from its numerous job openings in semiconductor-related roles, including positions for ASIC chip designers, underscoring its commitment to expanding in this critical domain.
According to informed sources, ByteDance has also been attracting top talent from other Chinese AI chip firms, reinforcing its strategic ambitions in advanced semiconductor technology.
