ByteDance Collaborates with Broadcom on Advanced AI Chip Development

ByteDance Ltd. is collaborating with Broadcom Inc. to develop an advanced AI processor. This customized chip, known as an application-specific integrated chip (ASIC), will be based on 5-nanometer technology and manufactured by Taiwan Semiconductor Manufacturing Co. (TSMC). The partnership aims to comply with U.S. export restrictions while securing a stable supply of high-end chips for ByteDance amid U.S.-China tensions.

The collaboration is notable due to ongoing U.S. efforts to limit Chinese advancements in semiconductor technology through export controls. ByteDance, which operates popular apps such as TikTok and Douyin, expects this partnership to reduce procurement costs and ensure a steady supply of higher-end semiconductors. While TSMC is not expected to begin manufacturing the chip this year, the move is seen as a strategic step to support ByteDance's AI initiatives and data center operations.