There have been discussions between ByteDance Ltd. and Broadcom Inc. regarding a potential collaboration on an AI processor to support the development of technology by TikTok's parent company. According to a source familiar with the discussions, the U. S. chip designer and Beijing-based ByteDance have explored the idea of creating a purpose-built chip using 5-nanometer technology. It should be noted that no agreement has been made at this point. However, Broadcom already supplies an older-generation 7nm AI processor for use in ByteDance's data centers. The source shared this information on the condition of anonymity as it is not meant to be public knowledge. It has been reported by Reuters that the proposed chip would adhere to U. S. trade restrictions on China.

The current business relationship between the two companies focuses mainly on server and networking equipment, with ByteDance mentioned as a customer in Broadcom's press releases. During an investor announcement in March, Broadcom mentioned adding a new customer for its consumer AI accelerator business. The company stated that it will begin shipping products to this customer in the coming months, without disclosing their name. If a deal is reached, Taiwan Semiconductor Manufacturing Co. would manufacture the customized chip, as reported by Reuters. The collaboration between TikTok's parent company and two global semiconductor firms is noteworthy considering the efforts by the U. S. government to restrict Chinese chipmaking ambitions through production and export curbs. This arrangement is aimed at ensuring a reliable supply of chips for ByteDance, which operates the largest short video platform globally, along with Chinese services Douyin and Toutiao. ByteDance's Doubao has become the most popular AI chatbot in China this year. ByteDance's global competitors, such as Meta Platforms Inc. , Microsoft Corp. , and Alphabet Inc. 's Google, are either developing or already using their own customized chips for AI tasks. As AI is a priority for ByteDance this year, the company will strive to keep up with its U. S. rivals. Requests for comments from representatives of ByteDance, Broadcom, and TSMC were unanswered at the time of writing.