- ByteDance is partnering with Broadcom to develop a 5nm custom AI processor, complying with U.S. export regulations.
- The collaboration aims to secure a stable supply of high-end chips amid U.S.-China tensions.
- Manufacturing of the ASIC will be outsourced to Taiwan’s TSMC.
- ByteDance has previously procured Broadcom’s Tomahawk and Bailly chips for AI applications.
- The company is actively recruiting in the semiconductor field, including ASIC chip designers.
Main AI News:
ByteDance is partnering with U.S. chip designer Broadcom to create a cutting-edge AI processor, sources familiar with the matter informed Reuters. This strategic move aims to secure a stable supply of high-end chips amidst ongoing U.S.-China tensions. The custom 5-nanometer chip, categorized as an application-specific integrated circuit (ASIC), will adhere to U.S. export regulations, with manufacturing outsourced to Taiwan’s TSMC, the sources added.
No public announcements have been made regarding similar collaborations between Chinese and U.S. companies involving 5nm or more advanced technologies since the introduction of Washington’s export controls on state-of-the-art semiconductors in 2022. Typically, U.S.-China partnerships in this sector focus on less sophisticated technologies.
The alliance between ByteDance and Broadcom, existing business partners, is expected to streamline procurement expenses and ensure a consistent supply of high-performance chips. Sources, speaking on condition of anonymity due to the sensitivity surrounding semiconductor issues in China, indicated that TSMC is not slated to commence manufacturing the new chip this year. Design efforts are progressing, but the “tapeout,” signaling the transition from design to manufacturing, has yet to commence.
ByteDance, akin to numerous global tech giants, is intensifying its efforts in generative AI. However, the company faces constraints in AI chip supply compared to its international counterparts. U.S. export controls, particularly those targeting advancements in AI and supercomputing for China’s military, have rendered Nvidia’s latest chipsets inaccessible. ByteDance competes fiercely for U.S. chips tailored for the Chinese market, alongside products from Huawei, a key player in AI accelerators.
Since at least 2022, ByteDance has maintained a business relationship with Broadcom, purchasing their Tomahawk 5nm high-performance switch chip and Bailly switch for AI computer clusters, as disclosed by Broadcom in public statements.
Securing AI chips is critical for ByteDance to enhance the capabilities of its algorithms across its portfolio of apps, including TikTok, Douyin, and the AI-powered chatbot service Doubao, which boasts 26 million users. To bolster its AI endeavors, ByteDance has accumulated Nvidia chips, including A100 and H100 models procured before initial U.S. sanctions, as well as A800 and H800 chips initially intended for the Chinese market but subsequently restricted.
Sources familiar with the matter also revealed ByteDance’s acquisition of Huawei’s Ascend 910B chips last year. The company is actively recruiting in the semiconductor domain, with numerous job openings, including positions for ASIC chip designers, listed on its website. Additionally, ByteDance has been attracting talent from other leading Chinese AI chip firms, further reinforcing its strategic efforts in semiconductor development.
Conclusion:
The partnership between ByteDance and Broadcom to develop advanced AI chips underscores ByteDance’s strategic efforts to ensure a consistent supply of high-performance semiconductor technology amidst geopolitical challenges. This move not only enhances ByteDance’s technological capabilities but also positions it competitively in the global AI landscape, potentially mitigating dependencies on U.S.-based chip technologies.
