China's ByteDance is working with U.S. chip designer Broadcom (AVGO.O), opens new tabon developing an advanced AI processor, two sources familiar with the matter said, a move that would help TikTok's owner secure sufficient supply of high-end chips amid U.S.-Sino tensions.
The 5 nanometre chip - a customised product known as an application-specific integrated chip (ASIC) - would be compliant with U.S. export restrictions and manufacturing work would be outsourced to Taiwan's TSMC (2330.TW), opens new tab, the sources added.
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There have been no publicly announced chip development collaborations between Chinese and U.S. companies involving 5nm or more advanced technology since Washington introduced export controls for cutting-edge semiconductors in 2022. U.S.-China deals in the sector generally concern much less sophisticated tech.
ByteDance's tie-up with Broadcom, an existing business partner, would help slash procurement costs and ensure a stable supply of higher-end chips, said the sources, who declined to be identified due to the sensitivity of semiconductor issues in China.
