ByteDance said to be working with Broadcom on advanced AI chip

China’s ByteDance is working with US chip designer Broadcom on developing an advanced artificial intelligence (AI) processor, two sources familiar with the matter said, a move that would help TikTok’s owner secure a sufficient supply of high-end chips amid US-China tensions.

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The 5 nanometre chip – a customised product known as an application-specific integrated chip (Asic) – would be compliant with US export restrictions and manufacturing work would be outsourced to the Taiwan Semiconductor Manufacturing Company (TSMC), the sources added.

There have been no publicly announced chip development collaborations between Chinese and US companies involving 5nm or more advanced technology since Washington introduced export controls for cutting-edge semiconductors in 2022. US-China deals in the sector generally concern much less sophisticated tech.

ByteDance’s tie-up with Broadcom, an existing business partner, would help slash procurement costs and ensure a stable supply of higher-end chips, said the sources, who declined to be identified due to the sensitivity of semiconductor issues in China.