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Brief news summary
ByteDance and Broadcom have engaged in discussions regarding a potential collaboration on an AI processor to support the development of technology at TikTok's parent company. The two companies are said to have considered a 5-nanometer chip, although no agreement has been reached thus far. Broadcom already supplies a 7nm AI processor to ByteDance, and the proposed chip would comply with US trade restrictions on China. If a deal is reached, Taiwan Semiconductor Manufacturing Co. would manufacture the customized chip. The partnership between the TikTok owner and global semiconductor firms is noteworthy given US efforts to curtail Chinese chipmaking ambitions. The collaboration aims to ensure a reliable supply of chips for ByteDance, as it competes with rivals like Meta Platforms, Microsoft, and Google in the AI field. Representatives for ByteDance, Broadcom, and TSMC have not commented on the discussions.ByteDance Ltd. and Broadcom Inc. have reportedly engaged in discussions regarding a potential collaboration to develop an AI processor that would support the advancement of TikTok's parent company's technology. While no agreement has been reached yet, the companies have explored the possibility of creating a purpose-built 5-nanometer chip. Currently, Broadcom supplies an older-generation 7nm AI processor for ByteDance's data centers. The envisioned chip would comply with US trade restrictions on China.
If a deal is finalized, Taiwan Semiconductor Manufacturing Co. would likely manufacture the custom chip. The collaboration between ByteDance and the two semiconductor firms is noteworthy amidst US efforts to restrict Chinese chipmaking ambitions. The objective of this collaboration is to ensure a consistent supply of chips to ByteDance as it operates the world's largest short video platform along with other Chinese services. ByteDance's global competitors are also developing their own specialized chips for AI tasks. Both ByteDance and Broadcom declined to provide comments on the matter.
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