ByteDance, TikTok's parent company, is reportedly working with American chip designer Broadcom to develop a cutting-edge AI processor. This collaboration could secure a stable supply of high-performance chips for ByteDance, according to Reuters. Sources claim the joint project involves a 5 nm Application-Specific Integrated Circuit (ASIC), designed to comply with U.S. export regulations. TSMC is slated to manufacture the chip, though production is not expected to begin this year.

This partnership marks a significant development in U.S.-China tech relations, as no public announcements of such collaborations on advanced chips have been made since Washington implemented stricter export controls in 2022. For ByteDance, this move could reduce procurement costs and ensure a steady chip supply, crucial for powering its array of popular apps, including TikTok and the ChatGPT-like AI chatbot "Doubao." The company has already invested heavily in AI chips, reportedly spending $2 billion on NVIDIA processors in 2023.