ByteDance, the parent company of TikTok, is reportedly collaborating with American chip designer Broadcom to develop a custom 5-nanometer application-specific integrated chip (ASIC) to ensure a stable supply of high-end chips amidst tensions between the United States and China. This collaboration, aimed at complying with US export restrictions, would see the manufacturing of the chip outsourced to Taiwan Semiconductors (TSMC).
While no public announcements have been made about such collaborations involving 5nm or more advanced technology, this partnership between ByteDance and Broadcom, who are already business partners, is expected to reduce procurement costs and secure a consistent supply of high-end chips essential for improving algorithms for ByteDance’s various apps, including TikTok and its Chinese version, Douyin.
As of now, TSMC is not expected to begin manufacturing the new chip this year, but the design work is reportedly in progress. The collaboration comes at a time of rising tensions between the US and China, particularly in the semiconductor and technology sectors, with the US imposing export controls on advanced semiconductors to limit China’s access to cutting-edge technology.
Notably, Chinese companies like SMIC have been making advancements in the semiconductor industry to counter US export restrictions, while Broadcom has been excelling in AI and network technology sectors, outpacing competitors like Nvidia and Marvell Technology in certain areas. This collaboration between ByteDance and Broadcom signifies a strategic move to overcome challenges in the current geopolitical climate and meet the growing demand for high-end chips.
Broadcom’s stock closed at $1,658.63 on Friday, experiencing a 4.38% decrease on the day, but showing a significant growth of 52.82% so far this year. The collaboration between ByteDance and Broadcom highlights the importance of safeguarding AI chips for ByteDance’s algorithm improvement and signifies a notable development amidst the ongoing tensions between the US and China in the semiconductor industry.
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https://www.benzinga.com/markets/asia/24/06/39449696/tiktok-parent-bytedance-collaborates-with-broadcom-to-develop-advanced-ai-chip-amid-us-china-tension