ByteDance, the parent company of TikTok, is advancing its technological capabilities by developing a state-of-the-art 5 nanometer AI chip in collaboration with U.S. chip designer Broadcom. This strategic move aims to bolster ByteDance’s AI infrastructure amid the ongoing U.S.-China tech rivalry.
The new chip, known as an application-specific integrated circuit (ASIC), is being designed to comply with stringent U.S. export restrictions. The manufacturing process for this advanced chip will be handled by Taiwan Semiconductor Manufacturing Corp. (TSMC), a leading player in the semiconductor industry known for producing chips for tech giants such as Apple and Nvidia.
The collaboration marks a significant step as it represents one of the few high-tech partnerships between Chinese and U.S. companies since the implementation of export controls on advanced semiconductors by the U.S. in 2022. These restrictions were designed to limit China’s access to cutting-edge technology, particularly in AI and supercomputing.
While the design phase of the chip is progressing well, production is not expected to begin this year. The chip is still in the design stage, and the “tapeout” phase, which signals the transition from design to manufacturing, has yet to commence.
For ByteDance, securing a steady supply of high-end chips is crucial. The company has been heavily investing in AI technology, which underpins its popular applications, including TikTok, Douyin (the Chinese version of TikTok), and the AI-driven chatbot service Doubao. To support its AI initiatives, ByteDance has been stockpiling Nvidia’s advanced chipsets and has allocated significant resources for these acquisitions.
The U.S. export controls have made it challenging for Chinese tech firms to obtain the most advanced AI chips. ByteDance, like its peers, has been navigating these restrictions by securing Nvidia chips before the sanctions took effect and purchasing AI accelerators from Huawei.
In addition to its chip development efforts, ByteDance is actively recruiting semiconductor experts and has posted numerous job openings related to ASIC chip design. The company has also been attracting top talent from other Chinese AI chip firms to strengthen its in-house capabilities.
