06:01 AM EDT, 06/24/2024 (MT Newswires) -- Broadcom ( AVGO ) is working with TikTok's Chinese parent company ByteDance to develop an advanced AI processor to ensure a stable supply of high-end chips amid US-China tensions, multiple media outlets reported Monday.

The companies are in discussions about a 5-nanometer chip but no deal has yet been reached, according to anonymous sources. Broadcom ( AVGO ) already supplies an older-generation AI processor for ByteDance's data centers.

The proposed chip is expected to comply with US export restrictions and the manufacturing work will be outsourced to Taiwan Semiconductor Manufacturing ( TSM ) , sources cited by Reuters said. However, TSMC is not expected to start manufacturing the new chip this year, one of the sources added.

ByteDance and Broadcom ( AVGO ) did not immediately respond to MT Newswires' requests for comment.

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