China’s ByteDance is developing an advanced 5 nanometer AI chip with US firm Broadcom, Reuters says, citing two sources familiar with the plans. Taiwan Semiconductor Manufacturing Corp. which makes chips for Apple, Nvidia, Qualcomm, and AMD, is expected to manufacture the upcoming ByteDance-Broadcom chip. The 5-nanometer chip being developed is apparently designed to comply with US export regulations. This means the chip’s specifications and capabilities are carefully tailored to fall within the permitted limits set by US authorities. ByteDance purchased Broadcom’s 5nm chips and Bailly switches for AI computers before.ByteDance is pursuing AI technology and advancements and has been buying large amounts of Nvidia chips.Reuters notes. ByteDance reportedly earmarked a staggering $2 billion for Nvidia chips in 2023. The US previously established chip export trade restrictions with China, barring advanced chip exports from the US to the country in 2022. Reuters also says that ByteDance has been stockpiling Nvidia chips and had set aside $2 billion to purchase hardware from the company. These include A100 and H100 chips, in addition to A800 and H800 chips; designed by Nvidia specifically for the Chinese market but which were also later restricted. Despite these arrangements the relationship and technology is still subject to regulatory evaluation. Broadcom Inc. headquartered in Palo Alto California, is an American designer, developer, manufacturer, and global supplier of semiconductor and infrastructure software products. Broadcom serves the data center, networking, software, broadband, wireless, storage, and industrial markets.
Jeffrey Newman is a whistleblower lawyer, whose firm represents whistleblowers in healthcare fraud cases under the False Claims Act (FCA) and also under the Securities and Exchange, FINCEN and CFTC whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
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