ByteDance, the owner of TikTok, is in discussions to enter a partnership with Broadcom to design a 5nm artificial intelligence (AI) chip, according to Bloomberg. The move aims to meet the compliance requirements of US sanctions imposed on Chinese tech companies. Production of the chip will be managed by Taiwan Semiconductor Manufacturing Corp. (TSMC), although it is not slated to begin this year, informed sources disclosed.
ByteDance is already active to find its way around US sanctions, reportedly employing a workaround to the U.S. prohibition on straight purchases of Nvidia’s advanced AI chips by leasing them from cloud providers based in the United States.
Navigating Regulatory Pressures
The potential collaboration between ByteDance and Broadcom comes as Chinese tech firms are increasingly under the microscope by US authorities. Through the development of an AI chip that meets US regulatory standards, ByteDance hopes to avoid geopolitical pitfalls while advancing its tech capabilities without infringing on global regulations.
The planned AI chip will employ 5nm technology, known for its enhanced efficiency and performance in AI roles. Leading semiconductor manufacturer TSMC reportedly has been chosen to handle production. TSMC’s selection emphasizes the project’s ambition and the company’s capability for high-quality semiconductor manufacturing.
For ByteDance, this collaboration extends beyond technology; it is a strategic initiative designed to secure the firm’s future amid stringent US rules. Partnering with Broadcom, an American company, indicates ByteDance’s intent to work closely with US firms and adhere to global standards.
This development comes as the global tech sector faces substantial changes due to geopolitical strains. US sanctions have already affected many Chinese tech giants, and ByteDance’s proactive stance may serve as an example for other companies in similar situations. This AI chip project could potentially lead to more cross-border cooperation between Chinese and American tech enterprises.
Although AI chip production is not expected to begin this year, the collaboration between ByteDance and Broadcom marks an important step for Chinese AI technology providers.
Last Updated on November 7, 2024 3:49 pm CET
