China’s ByteDance Collaborates With Broadcom On Advanced AI Processor: Report
The collaboration involves creating a 5-nanometre application-specific integrated chip (ASIC) that complies with US export restrictions
China’s ByteDance is partnering with US chip designer Broadcom to develop an advanced AI processor, a move aimed at securing a stable supply of high-end chips amidst rising US-China tensions, according to sources cited in a Reuters report.
The collaboration involves creating a 5-nanometre application-specific integrated chip (ASIC) that complies with US export restrictions. The manufacturing will be reportedly outsourced to Taiwan’s TSMC, with production expected to start post-2024, as per the sources.
This partnership marks a significant step as it is the first publicly known collaboration between Chinese and US companies on such advanced technology since Washington imposed semiconductor export controls in 2022. Typically, US-China tech deals have focused on less advanced technologies. By teaming up with Broadcom, ByteDance aims to cut procurement costs and ensure a consistent supply of higher-end chips, which are crucial for enhancing the company’s AI capabilities across its popular apps, including TikTok and its Chinese counterpart Douyin.
ByteDance and Broadcom have been collaborating since at least 2022, with ByteDance purchasing Broadcom’s Tomahawk 5nm high-performance switch chips and Bailly switches for AI clusters. The current AI chip development project will further strengthen this business relationship.
The ability to secure advanced AI chips is vital for ByteDance, especially as it continues its push into generative artificial intelligence. The company’s AI advancements are crucial for enhancing its algorithms and maintaining its competitive edge globally. However, ByteDance faces challenges due to limited access to top-tier AI chips as a result of US export restrictions. Nvidia’s most advanced chipsets are out of reach, prompting fierce competition for available alternatives, including chips developed by Huawei.
In its efforts to secure necessary hardware, ByteDance has been stockpiling Nvidia chips, including the A100 and H100 models, before US sanctions took effect. The company has also acquired A800 and H800 chips, which were designed for the Chinese market but later restricted. Last year, ByteDance allocated USD 2 billion for these purchases.
(Inputs from Reuters)
