ByteDance, the parent company of TikTok, is reportedly teaming up with American chip designer Broadcom to develop an advanced AI processor. This collaboration aims to create a 5nm application-specific integrated circuit (ASIC) that complies with US export control regulations and will be manufactured by TSMC. The partnership between ByteDance and Broadcom is expected to reduce procurement costs and ensure a stable supply of high-end chips for ByteDance, which is essential for its algorithms used in various popular apps like “Doubao,” an AI chatbot service.
In response to US sanctions, Chinese AI chip makers have opted to lower the quality of their self-designed processors to continue using TSMC foundry services. Some companies, like MetaX and Enflame, have adjusted chip designs to comply with regulations. On the other hand, NVIDIA’s low-end AI chips for the Chinese market, including the latest model “H20,” have faced pricing challenges and a lukewarm reception from customers. These chips are reportedly cheaper than competing products from Huawei.
Major tech companies in China, including Alibaba, Baidu, ByteDance, and Tencent, have been advised to reduce their reliance on foreign-made chips, such as those from NVIDIA. ByteDance had previously stockpiled NVIDIA chips before the initial round of US sanctions and allocated $2 billion for chip purchases in 2023.
The collaboration between ByteDance and Broadcom for developing an advanced AI processor indicates a strategic move to secure a reliable source of high-end chips in a challenging geopolitical environment. The focus on developing AI-specific chips compliant with export regulations reflects the evolving landscape of global semiconductor supply chains. The future of this partnership and its impact on ByteDance’s technological capabilities remain to be seen as the design process progresses towards manufacturing.
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https://www.trendforce.com/news/2024/06/24/news-broadcom-reportedly-developing-5nm-ai-chip-with-bytedance-manufactured-by-tsmc/
