China’s ByteDance is partnering with U.S. chip designer Broadcom to develop an advanced AI processor, according to sources familiar with the matter. This initiative aims to secure a stable supply of high-end chips for TikTok’s parent company amid ongoing U.S.-China tensions. The 5 nanometer application-specific integrated chip (ASIC) will comply with U.S. export restrictions, with manufacturing outsourced to Taiwan’s TSMC. This collaboration marks a significant move, as no publicly announced partnerships between Chinese and U.S. firms involving such advanced technology have occurred since Washington’s 2022 export controls on cutting-edge semiconductors.
The ByteDance-Broadcom partnership, leveraging their existing business relationship, is expected to reduce procurement costs and ensure a consistent supply of high-end chips. While design work on the chip is progressing, TSMC is not anticipated to begin manufacturing this year. ByteDance, like many tech firms, is pushing into generative AI but faces a limited supply of AI chips due to U.S. export controls that restrict access to Nvidia’s most advanced chipsets. This collaboration highlights the increasing need for innovative solutions in the semiconductor industry to navigate geopolitical challenges.