ByteDance, Broadcom Team Up on AI chip

Under U.S.-Sino tensions, China’s ByteDance is working with Broadcom on an advanced AI processor, two individuals said. This would allow TikTok’s owner secure an adequate supply of high-end chips

The 5 nanometer chip, which is a customized product known as an application-specific integrated circuit (ASIC), would be in compliance with U.S. export restrictions.

The manufacturing work would be outsourced to Taiwan’s TSMC, the sources added.

Since Washington implemented export controls for cutting-edge semiconductors in 2022, there have been no publicly announced chip development collaborations between Chinese and U.S. companies that encompass 5nm or more advanced technology.

The technology involved in U.S.-China transactions in this sector is typically much less sophisticated.

The sources, who declined to be identified due to the sensitivity of semiconductor issues in China, stated that ByteDance’s partnership with Broadcom, an existing business partner, would assist in reducing procurement costs and guarantee a consistent supply of high-end processors.

They stated, however, that the new processor is not anticipated to be manufactured by TSMC this year. One of them stated that the “tapeout,” which signifies the conclusion of the design phase and the commencement of manufacturing, has not yet commenced, despite the fact that design work is well advanced.

ByteDance and Broadcom did not respond to subsequent inquiries for comment. TSMC declined to provide a response.
ByteDance, like numerous global technology companies, has initiated a significant initiative in the field of generative artificial intelligence.

However, the company and its Chinese counterparts are confronted with a significantly reduced supply of AI processors in comparison to their international counterparts.

The most advanced chipsets from Nvidia are currently unavailable as a result of U.S. export controls that are designed to impede the advancement of AI and supercomputing by the Chinese military.

Competition for U.S. processors that are specifically designed for the Chinese market, as well as those from Huawei (HWT.UL), a competitor and one of the few Chinese manufacturers of AI accelerators, is intense.

Since at least 2022, ByteDance and Broadcom have been business partners. Broadcom has announced in public statements that the Chinese company has acquired the Tomahawk 5nm high-performance switch processor and the Bailly switch from the U.S. company for AI computer clusters.

In order to enhance the effectiveness of its algorithms, ByteDance must ensure the security of AI processors. In addition to the Chinese version of the short-video app Douyin and TikTok, ByteDance maintains a variety of popular applications, such as Doubao, a chatbot service similar to ChatGPT that has 26 million users.

According to an individual who was not involved in the matter, ByteDance has amassed an inventory of Nvidia processors to bolster its AI initiatives.

According to the individual, this encompasses A100 and H100 chips that were available prior to the implementation of the initial round of U.S. sanctions, as well as A800 and H800 chips that Nvidia produced for the Chinese market but were subsequently restricted.

The individual also stated that ByteDance allocated $2 billion for purchase of Nvidia chips last year.

According to two distinct sources with knowledge of the matter, ByteDance also acquired Huawei’s Ascend 910B processors last year.

Currently, Bytedance has hundreds of semiconductor-related employment openings posted, including 15 for ASIC chip designers, as per website inspections.

Additionally, one of the sources who has firsthand knowledge of this matter has reported that it has been recruiting senior personnel from other Chinese AI chip companies.