ByteDance, the Chinese company behind TikTok, is collaborating with Broadcom, a US chip designer, to develop a cutting-edge artificial intelligence processor. This partnership aims to ensure ByteDance has reliable access to high-performance chips amidst ongoing tensions between the US and China. The 5-nanometer chip in development is a customized ASIC (application-specific integrated circuit) designed to comply with US export regulations. According to sources familiar with the matter, the chip will be manufactured by Taiwan Semiconductor Manufacturing Company (TSMC).

Since the introduction of export controls by Washington in 2022 for state-of-the-art semiconductors, there have been no publicly disclosed collaborations between Chinese and US companies focusing on chip development using 5nm or more advanced technology. Generally, agreements between the US and China in this sector involve significantly less advanced technologies.

The sources, who declined to be identified due to the sensitivity of semiconductor issues in China, said ByteDance’s tie-up with Broadcom, an existing business partner, would help slash procurement costs and ensure a stable supply of higher-end chips. However, TSMC is not expected to start manufacturing the new chip this year, they said. One of them said that while design work is well underway, the “tapeout” which marks the end of the design phase and the beginning of manufacturing has not started.

Repeated requests for comment from ByteDance and Broadcom went unanswered, and TSMC also chose not to comment. Like many international tech companies, ByteDance has significantly ramped up its efforts in generative AI. However, ByteDance and other Chinese firms face a much more restricted supply of AI chips than their global counterparts.