Media reports say that China’s ByteDance, the company behind social media app TikTok, is developing an advanced artificial intelligence (A.I.) chip with U.S. firm Broadcom (AVGO).
Multiple reports say that ByteDance and Broadcom are working on a five-nanometre application-specific integrated chip (ASIC) that will comply with U.S. export restrictions.
Once the design is completed, the chip will be manufactured by Taiwan Semiconductor Manufacturing Co. (TSM). However, manufacturing isn’t expected to start until 2025.
The partnership with Broadcom is helping ByteDance secure a reliable supply of high-end microchips at a time of heightened political tensions between the U.S. and China.
Work on the A.I. chip is also taking place as lawmakers in Washington, D.C. debate banning the TikTok app over concerns the Chinese government is collecting data on American users.
There have been no publicly announced chip collaborations between Chinese and U.S. companies involving advanced technology since Washington imposed export controls on American semiconductors in 2022.
ByteDance and Broadcom have been business partners since 2022. The Chinese company has previously purchased Broadcom’s Tomahawk five-nanometer high-performance microchip.
Like other technology firms, ByteDance is pushing into A.I. Securing a reliable supply of microchips will also help ByteDance make its TikTok algorithm more powerful.
Broadcom’s stock has risen 102% in the last 12 months to trade at $1,653.63 U.S. per share. The company is undertaking a 10-for-1 stock split on July 12 of this year.
ByteDance is a privately held and its stock doesn’t trade on a public exchange.
