ByteDance, the Chinese company behind TikTok, is collaborating with American chip designer Broadcom to develop a cutting-edge AI processor, as reported by Reuters. This partnership aims to ensure a stable supply of high-end chips for ByteDance amid escalating tensions between the US and China.
The advanced processor, a five-nanometer chip, is designed to comply with US export regulations to navigate the current geopolitical climate. This collaboration marks a rare instance of chip development cooperation between US and Chinese companies, following export controls imposed by the Biden administration in 2022.
The US has been actively promoting domestic semiconductor production through initiatives like the US CHIPS Act, which provides incentives for manufacturing. By working with Broadcom, ByteDance aims to secure a cost-effective and reliable source of chips for its AI-related endeavors.
As part of the partnership, manufacturing duties will be outsourced to Semiconductor Manufacturing Company in Taiwan. ByteDance previously engaged with Broadcom in 2022 by acquiring the Tomahawk 5nm high-performance switch chips.
In terms of AI deals, the US has outpaced China in deal value, according to GlobalData’s database. In 2023, AI deals in the US reached $50 billion, demonstrating significant growth from the previous year. Meanwhile, China’s AI deal value remained relatively stagnant at $7.9 billion in 2023, compared to $7.4 billion in 2022.
GlobalData projects substantial growth in the AI market, estimating it to reach $909 billion by 2030 with a compound annual growth rate of 35% between 2022 and 2030. Within the GenAI sector, revenue is expected to surge from $1.8 billion in 2022 to $33 billion by 2027 at a CAGR of 80%.
Overall, the collaboration between ByteDance and Broadcom highlights the importance of strategic partnerships in navigating global trade dynamics and ensuring the supply of crucial technological components. This move reflects the growing significance of AI technology and the efforts of companies to stay competitive in the rapidly evolving landscape.
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https://www.verdict.co.uk/chinas-bytedance-partners-with-broadcom-to-develop-advanced-ai-chip/