U.S. chipmaker, Broadcom Inc., and Chinese technology company, ByteDance, are reportedly collaborating to create a cutting-edge artificial intelligence processor.
The particular chip is an application-specific integrated chip (ASIC), a specialised product manufactured using a 5-nanometer technology. With Taiwan Semiconductor TSM -0.65% handling the manufacture, it would comply with US export regulations, according to Reuters’ article on Monday, which cited two people with knowledge of the situation.
Broadcom and ByteDance have collaborated on projects together since at least 2022.
According to disclosures made public by Broadcom, the Chinese company has acquired the U.S. company’s Bailly switch for artificial intelligence computer clusters and its Tomahawk 5nm high-performance switch chip.
According to the source, the action is meant to assist ByteDance in securing a consistent supply of AI processors, particularly in light of the stringent U.S. limitations on chip exports to China.
The 5-nanometer device will reportedly be manufactured by TSMC, the largest contract chipmaker in the world, and will comply with US export restrictions.
Newsng gathered that since Washington implemented export limitations for sophisticated semiconductors in 2022, there have been no publicly disclosed chip development partnerships between Chinese and American companies employing 5nm or higher advanced technologies.
In this industry, U.S.-China transactions typically involve significantly less advanced technology.
The individuals, who asked not to be named because semiconductor concerns in China are sensitive, claimed that ByteDance’s partnership with Broadcom, an established business partner, would help reduce procurement costs and provide a steady supply of higher-end chips.
ByteDance needs to secure AI chips in order to improve its algorithms.
In addition to TikTok and its Chinese counterpart Douyin, ByteDance is in charge of several well-known applications, such as Doubao, a chatbot service with 26 million users that resembles ChatGPT.
We earlier reported that ByteDance is investing MYR10 billion ($2.13 billion) in developing AI in Malaysia and promoting the country’s advancements in the field.
