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ByteDance (BDNCE), the Chinese language agency that owns TikTok, is collaborating with Broadcom (NASDAQ:AVGO) on a sophisticated AI chip with the purpose of securing a secure provide of high-end chips and reducing procurement prices amid China-U.S. commerce tensions, two sources advised Reuters.
Manufacturing of the 5 nanometer chip, an application-specific built-in circuit that may adjust to U.S. export curbs, shall be outsourced to Taiwan Semiconductor (TSM).
TSMC (TSM) is just not anticipated to start out manufacturing the brand new chip, which continues to be being designed, this yr. The tape-out, or the ultimate stage of the chip design course of earlier than manufacturing, has not begun.
Whereas the businesses haven’t confirmed the partnership, it could be the primary between a Chinese language firm and a U.S. agency involving 5 nm or extra superior chipmaking expertise since Washington imposed chip export restrictions amid nationwide safety fears.
Due to the curbs, Chinese language firms have a restricted provide of high-end U.S. chips in comparison with worldwide friends, at a time when extra corporations are flocking to generative AI.
A gradual provide of AI chips is vital for ByteDance (BDNCE), which owns many standard apps together with its ChatGPT-like AI chatbot Doubao.
The corporate stockpiled Nvidia’s superior chips earlier than U.S. restrictions went into efficient, one other supply advised Reuters, and allotted $2B for getting these chips final yr. ByteDance (BDNCE) additionally purchased Huawei’s Ascend 910B chips in 2023.
