American chip designer Broadcom is reportedly working on an advanced artificial intelligence processor for Chinese tech giant Bytedance. The 5-nanometer chip, known as an application-specific integrated chip (ASIC), will comply with U.S. export restrictions, and production will be outsourced to Taiwan’s TSMC. This move aims to help Bytedance secure a stable supply of high-end chips for TikTok amid tensions between the U.S. and China. Production is expected to begin in 2025.
ByteDance’s partnership with Broadcom, an existing business partner, will reduce procurement costs and ensure a stable supply of high-end chips. TSMC is not expected to start manufacturing the new chip this year, as design work is ongoing. ByteDance has been focusing on generative artificial intelligence, but faces limited availability of AI chips compared to foreign companies like Nvidia, whose advanced chipsets are restricted for export to prevent Chinese military advancements in AI.
ByteDance and Broadcom have been partners since at least 2022, with ByteDance purchasing Broadcom’s high-performance switching chip and AI computer clusters products. The collaboration is crucial for ByteDance to enhance its algorithms for TikTok, Douyin, and other popular apps like Doubao. To support its AI initiatives, ByteDance has stockpiled Nvidia chips, including various models made available before U.S. sanctions and those designed for the Chinese market. The company has also acquired Ascend 910B chips from Huawei.
Bytedance has hundreds of semiconductor-related job openings, including roles for ASIC chip designers. The company has been recruiting senior officials from other Chinese AI chip companies to support its chip development efforts. The collaboration with Broadcom signifies efforts by Chinese tech companies to secure a stable supply of high-end chips in the face of export restrictions and intense competition for AI chips.
The partnership between Bytedance and Broadcom highlights the importance of AI chip development for Chinese tech firms like Bytedance. As tensions between the U.S. and China continue to impact the global semiconductor industry, companies are exploring new collaborations and strategies to ensure access to advanced chip technology. Bytedance’s focus on AI chip development reflects its commitment to advancing its algorithms and services for users worldwide.
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https://www.asiafinancial.com/broadcom-designing-an-ai-chip-for-chinas-bytedance-sources
