ByteDance is looking into working with Broadcom and TSMC to make a custom AI processor in light of trade restrictions between the US and China. This could help protect supply chains and improve AI capabilities.
The company that owns TikTok is in talks with ByteDance and Broadcom to make an AI processor for them. There is already a relationship between the Chinese company and the US chip designer, so the proposed deal would protect ByteDance’s supply chains and help them make progress in AI development.
TSMC, the world’s largest supplier of advanced semiconductors, will manufacture the new chip. This is a crucial step to calm US concerns because of ongoing trade restrictions with China that don’t allow the export of advanced components.
As these steps are in line with what Washington set up in 2022, a deal is still possible, but it will be carefully examined. Although the US has placed restrictions on the trading of 5nm technology and more advanced chips, this unique agreement is still possible.
Given what the Chinese government has done in the past, the US should be happy with the planned collaboration between ByteDance and Broadcom at the moment. There is little chance that it will aid China’s chipmaking development.
In an unusual move, ByteDance will also work with two of the biggest chip makers in the world. Reuters was the first to report that the group’s work would be mainly on the 5-nanometer chip, which is a special product also known as an application-specific integrated chip (ASIC). Despite the absence of a final agreement, ByteDance and Broadcom are already collaborating, laying the foundation for a new project.
ByteDance’s technological advancements and strategic collaborations
The US designer works closely with the owner of TikTok to support its server and network infrastructure, especially with its 7nm processor.
ByteDance also runs local services called Douyin and Toutiao. This year, Douyin was named China’s best AI chatbot, and Toutiao was named a new “content king” by aggregators.
The company can’t get enough power and growth, which makes it even more dependent on high-tech chips, especially for its complicated algorithms.
Tech and social media giants that compete with Google, such as Meta, Microsoft, and Alphabet, which owns Google, are all taking similar steps. They’re all using or developing their advanced processors.
Apple has already brought OpenAI‘s ChatGPT on board to work with its new intelligence system, and Meta is said to be in talks with Apple about AI development.
