ByteDance, the company behind TikTok, is collaborating with Broadcom to develop a custom 5-nanometer artificial intelligence processor amid ongoing tensions between the United States and China. The chip would be an application-specific integrated chip (ASIC) and would be manufactured by Taiwan’s TSMC to comply with U.S. export restrictions. This partnership aims to secure a stable supply of high-end chips for ByteDance and reduce procurement costs.
Despite the restrictions placed on the export of cutting-edge semiconductors, ByteDance’s collaboration with Broadcom marks a unique partnership between Chinese and U.S. companies in the development of advanced technology. The two companies have been working together since 2022, with ByteDance purchasing Broadcom’s 5nm Tomahawk high-performance switch chip and Bailly switch for AI computing clusters.
ByteDance’s focus on artificial intelligence has led to significant investments in advanced chips, including those from Nvidia and Huawei. The company has stockpiled Nvidia chips, including the A100 and H100 models, as well as Huawei’s Ascend 910B chips. This strategic approach supports ByteDance’s efforts to enhance its algorithms across various platforms, including TikTok and Douyin.
To further bolster its AI capabilities, ByteDance is actively recruiting semiconductor professionals and poaching talent from other Chinese chip companies. The company currently has numerous job openings related to ASIC chip design and is dedicated to expanding its expertise in semiconductor technology.
While the collaboration between ByteDance and Broadcom signifies a step towards securing a stable supply of high-end chips, manufacturing of the new 5nm ASIC chip is not expected to begin this year. Both companies have remained tight-lipped about the specifics of their partnership, with no official comments provided in response to inquiries.
The ongoing developments highlight ByteDance’s commitment to advancing its AI capabilities in the face of challenges related to chip procurement and export restrictions. By working with Broadcom and investing in a diverse range of high-end chips, ByteDance aims to strengthen its position in the competitive landscape of artificial intelligence technology.
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