China's ByteDance is working with U.S. chip designer Broadcom ( AVGO.O ) to break new ground by developing an advanced AI processor, two sources familiar with the matter said, a move that would help the TikTok owner to ensure a sufficient supply of high-end chips in the middle of the US. Tensions otherwise
The 5-nanometer chip, a custom product known as an application-specific integrated chip (ASIC), would meet U.S. export restrictions and manufacturing work would be outsourced to Taiwan's TSMC ( 2330.TW ), open a new tab, the sources added.
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There have been no publicly announced chip development collaborations between Chinese and US companies involving 5nm or more advanced technology since Washington introduced export controls on cutting-edge semiconductors in 2022. The deals between the US and China in the sector generally refers to much less sophisticated technology.
ByteDance's tie-up with Broadcom, an existing business partner, would help reduce procurement costs and ensure a stable supply of high-end chips, said the sources, who declined to be identified due to the sensitivity of the issues. of semiconductors in China.
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