TikTok Parent Company ByteDance Making AI Chip With Broadcom, TSMC

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(Credit: Roslan Rahman/AFP via Getty Images)

TikTok parent company ByteDance is currently developing an advanced 5 nanometer AI chip with US firm Broadcom, Reuters reports, citing two sources familiar with the plans. Taiwan Semiconductor Manufacturing Corp. (TSMC), which makes chips for Apple, Nvidia, Qualcomm, and AMD, is expected to manufacture the upcoming ByteDance-Broadcom chip.

The chip would not violate existing US chip export restrictions, Reuters says. It’s unclear exactly when the chip would enter production with TSMC, however, as it’s currently in the design phase and production is not expected to start this year. ByteDance, Broadcom, and TSMC have not confirmed or commented on the matter.

ByteDance has bought Broadcom’s 5nm chips and Bailly switches for AI computers in the past. Like many tech firms, ByteDance is pursuing AI technology and advancements and has been acquiring large quantities of Nvidia chips, Reuters notes. ByteDance reportedly earmarked a staggering $2 billion for Nvidia chips in 2023.

In the US, ByteDance has been the subject of much concern among some US regulators who believe its status as a China-based company poses a national security threat to Americans who use its TikTok video app. In April, US President Biden signed a bill that could ban TikTok as early as next year if TikTok doesn’t sever its ties with ByteDance and China.

ByteDance, however, claims that a divestment or sale of this type won’t be possible. It is now fighting the US bill, arguing that a US TikTok ban would be a First Amendment violation.

The US previously established chip export trade restrictions with China, barring advanced chip exports from the US to the country in 2022. Chinese companies have found some loopholes, however, and have continued to acquire some smaller chips as well as more advanced chips via other types of computer hardware, like server components.

China has also made some bans and changes of its own. The country has reportedly decided to phase out the use of US Intel and AMD chips from its government computers and telecom networks. China also banned chips from US firm Micron last year, claiming they pose a national security risk.