ByteDance, a chinese internet technology firm, is working with U.S. chip creator Broadcom on developing a high level AI processor, two sources acquainted with the matter said, a move that would help TikTok's proprietor secure adequate stock of high-end chips amid U.S.-Sino tensions.

 

The 5 nanometre chip - a tailored item known as an application-specific integrated chip (ASIC) - would be consistent with U.S. export restrictions and assembling work would be moved 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 involving 5nm or higher advanced technology. U.S.- China bargains in the area for the most part concern substantially less complex tech.

 

As per the sources, who declined to be identified due to the sensitive nature of semiconductor issues in China, ByteDance's partnership with Broadcom, an existing business partner, would help cut procurement costs and guarantee a stable supply of higher-end chips.

 

However, they stated that it is not anticipated that TSMC will begin manufacturing the new chip this year. One of them mentioned while design work is well in progress, the "tapeout" - which denotes the finish of the plan stage and the start of manufacturing - has not begun

 

ByteDance, like many global tech companies, has made a push for generative AI, but the firm and its Chinese competitors have to deal with a much smaller supply of AI chips than their international competitors.