ByteDance, the Chinese owner of TikTok, is working with Broadcom to develop an advanced AI processor.

Citing two sources with knowledge of the plans, Reuters reported that the 5nm ASIC chips will be manufactured by TSMC and be in full compliance with US export restrictions.

It is not expected that the chips will be manufactured this year.

Chip designer Broadcom and China-based ByteDance have worked together since 2022, with the latter having previously purchased Tomahawk 5nm high-performance switch chips and a Bailly switch for AI computer clusters from the US company.

China is currently unable to legally purchase advanced semiconductor technology from abroad due to wide-ranging sanctions that have been put in place by the US government. However, earlier this month it was reported that ByteDance had been able to access Nvidia’s most powerful processors by renting them from Oracle on US soil and thus exploiting a loophole in US sanction law.

Reuters also claimed that ByteDance has been stockpiling Nvidia chips and had set aside $2 billion in 2023 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.

Citing additional sources with knowledge of the matter, Reuters said that ByteDance had also purchased Huawei's Ascend 910B chips last year.

In April of this year, President Joe Biden passed a law that would force the sale of TikTok’s regional operations or else face being banned. ByteDance was given nine months to sell the social media platform however, the parent company is challenging the ruling in court, with oral arguments set to be heard on September 16.