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Reuters quoted two people familiar with the matter as saying that ByteDance is working with US chip design company Broadcom to develop an advanced artificial BroadCast Unitedligence (AI) processor, a move that will help ensure adequate supply of high-end chips amid tensions between the United States and China.
The source said ByteDance’s 5-nanometer AI chip, a customized product called an application-specific integrated chip (ASIC), will comply with U.S. restrictions and manufacturing will be outsourced to Taiwan’s TSMC.
Since the United States imposed export controls on the chip industry’s most advanced semiconductors in 2020, Chinese and American companies have not publicly announced any cooperation involving 5-nanometer or more cutting-edge chip technology.
Sources said ByteDance’s deal with Broadcom will help cut procurement costs and ensure a stable supply.
But sources said TSMC is not expected to start producing the new chip this year. One of the sources said that while design work is progressing smoothly, tapeout, which marks the end of the design phase and the beginning of the manufacturing phase, has not yet begun.
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