ByteDance Collaborates with Broadcom on Advanced AI Processor

According to sources familiar with the matter, China’s ByteDance, the owner of TikTok, is collaborating with U.S. chip designer Broadcom (AVGO) to develop an advanced AI processor.

This initiative aims to secure a stable supply of high-end chips amidst escalating U.S.-Sino tensions. The new chip, a 5-nanometer application-specific integrated circuit (ASIC), will comply with U.S. export restrictions and be manufactured by Taiwan’s TSMC (TSMC34.SA).

Addressing Supply Chain Challenges:

This collaboration is significant as it marks a rare chip development involving advanced technology between Chinese and U.S. companies since introducing U.S. export controls for cutting-edge semiconductors in 2022.

These controls were designed to curb China’s advancements in AI and supercomputing. By partnering with Broadcom, ByteDance aims to reduce procurement costs and ensure a steady supply of higher-end chips.

The design work for the new chip is progressing, although TSMC’s manufacturing is not expected to begin this year. The “tapeout” process, which marks the transition from design to manufacturing, has yet to start.

AI Push and Existing Partnerships:

ByteDance has been ramping up its efforts in generative artificial intelligence and has a history of partnership with Broadcom. Since 2022, ByteDance has utilized Broadcom’s Tomahawk 5nm high-performance switch chip and its Bailly switch for AI computer clusters.

Due to U.S. export controls, ByteDance, like many Chinese tech firms, faces a limited supply of AI chips. Nvidia’s most advanced chipsets are restricted, and competition for available U.S. and Huawei chips is intense.

ByteDance has stockpiled Nvidia chips, including the A100, H100, A800, and H800 models, to support its AI endeavors. Last year, the company allocated $2 billion for Nvidia chip purchases.

Broader AI and Chip Development Efforts

In addition to TikTok and Douyin, ByteDance operates various popular apps, including Doubao, a ChatGPT-like chatbot service with 26 million users. ByteDance has also purchased Huawei’s Ascend 910B chips to bolster its AI capabilities.

The company has hundreds of semiconductor-related job openings, including positions for ASIC chip designers, and has been actively recruiting talent from other Chinese AI chip firms.

ByteDance, the owner of TikTok, is collaborating with U.S. chip designer Broadcom (AVGO) to develop an advanced AI processor.