Staff Discover New Unit Status Unexpectedly
Several ByteDance chip design employees based in Beijing and Shanghai recently discovered they are now part of a Singapore-based unit. According to three individuals familiar with the matter, this change became clear when the staff were moved into a new group on the company’s internal messaging platform. Two of those people confirmed that the reassignment happened without prior notice.
Move May Help ByteDance Manage US-China Tech Restrictions
ByteDance’s decision to place its chip design team under a Singapore unit could help it better navigate ongoing US-China tensions. These geopolitical strains have made it harder for Chinese firms to access certain advanced semiconductor technologies.
Since late 2023, US rules have stopped companies operating in mainland China from using Taiwan’s TSMC to produce high-performance AI chips. TSMC is the world’s leading contract chipmaker. By linking its chip development to Singapore, ByteDance may avoid some of these export control limitations.
Sources did not reveal the exact name of the Singapore unit. Reuters was also unable to confirm how many of ByteDance’s chip engineers now fall under this group. ByteDance declined to comment on the matter.
Growing Investment in Custom Chips
Like many global tech firms, ByteDance is increasing its focus on building in-house chips. These chips, known as application-specific integrated circuits (ASICs), are designed to lessen dependence on suppliers such as Nvidia.
ByteDance currently does not outsource chip production to TSMC. However, sources said last year that the company had partnered with US-based Broadcom to develop an advanced AI chip. That processor is expected to be manufactured by TSMC.
The company registered a Singapore-based entity named Picoheart in December 2023, according to business records. This unit drew attention after it acquired a 9.5% stake in Chinese memory chip firm Innostar. ByteDance also runs large data centres in Singapore, and TikTok’s CEO, Shou Zi Chew, is based there.
Focus Remains on AI and Inference Chips
ByteDance began expanding its chip-related hiring in 2022. Despite this, it has launched fewer semiconductor products than Chinese rivals like Alibaba and Baidu.
At present, ByteDance’s chips are capable only of handling inference tasks. These are less complex than training tasks, which require more computational power. The company’s chip portfolio includes video decoding chips, networking chips, and AI-focused solutions. A dedicated team is actively working on artificial intelligence applications.
Recent job listings from ByteDance show at least six openings for chip-related roles. One of these positions is specifically for its AI chip team.
with inputs from Reuters
