ByteDance Developing Custom AI Chip in Samsung Talks Amid US Export Restrictions
TikTok's parent company ByteDance is negotiating with Samsung to manufacture custom AI inference chips, codenamed SeedChip, as US export controls push Chinese tech giants toward chip independence. Production could reach 350,000 units.
ByteDance Developing Custom AI Chip in Samsung Talks Amid US Export Restrictions
ByteDance, the parent company of TikTok, is making a significant move toward AI chip independence. The tech giant is reportedly developing its own AI chip and is in talks with Samsung to manufacture it, according to sources familiar with the matter.
The chip, codenamed SeedChip, represents ByteDance's response to escalating US export restrictions on AI semiconductors—a challenge that has forced many Chinese tech companies to accelerate their domestic chip development efforts.
Primary sources:
- •Reuters — ByteDance developing AI chip, in manufacturing talks with Samsung (Feb 11, 2026)
- •WinBuzzer — ByteDance in Talks with Samsung for Custom AI Chips (Feb 13, 2026)
The SeedChip Project
The custom AI chip effort builds on ByteDance's multi-year push to develop in-house semiconductors, which began with hiring chip talent back in 2022. The partnership with Samsung marks a significant escalation of these ambitions.
According to sources, ByteDance aims to:
- •Receive sample chips by the end of March 2026
- •Manufacture at least 100,000 units in 2026
- •Scale production to 350,000 units gradually
Notably, SeedChip is designed specifically for AI inference workloads—not training. This aligns with ByteDance's operational needs across TikTok and Douyin, where billions of content recommendations run daily on AI models.
Why Samsung?
ByteDance's choice of Samsung as a manufacturing partner is strategic for several reasons:
1. Memory Supply Security: Beyond chip manufacturing, ByteDance is negotiating with Samsung to secure memory chip supplies. Major memory manufacturers have reported that their entire 2026 supply is effectively sold out.
2. Integrated Capability: Samsung is one of the few companies that offers both leading-edge foundry services and memory chip production—giving it a competitive advantage that few rivals can match.
3. Guaranteed Access: While TSMC offers superior foundry technology, Samsung's integrated business model provides guaranteed access to high-bandwidth memory (HBM) chips that remain in severe shortage through 2027.
Samsung itself cautioned during its Q4 FY2025 earnings call that memory shortages would likely persist into 2027, with supply expansion constrained by limited cleanroom space.
US Export Restrictions Drive Chip Independence
The timing of this push is no coincidence. US export restrictions on AI chips to China have added significant urgency to ByteDance's chip independence efforts.
In late January, the Chinese government granted ByteDance, Alibaba, and Tencent permission to purchase Nvidia H200 chips—the three companies can acquire more than 400,000 GPUs in total. However, the SeedChip project demonstrates that ByteDance isn't relying solely on approved hardware.
This strategy mirrors the playbook already adopted by Google, Amazon, and Microsoft, all of which have developed custom AI chips to reduce reliance on Nvidia's dominant position in the AI accelerator market.
The $22 Billion Bet
ByteDance is committing substantial resources to its AI infrastructure. The company plans to spend over 160 billion yuan ($22 billion) on AI-related procurement in 2026.
The allocation breaks down as:
- •More than half toward purchasing Nvidia chips (including H200 models)
- •Significant investment in advancing the in-house chip project
The scale of this investment underscores the strategic importance of reducing dependency on foreign semiconductor technology—a priority that has only intensified as US-China tensions over chip technology continue to escalate.
What This Means for the AI Chip Market
ByteDance's move adds another major player to the growing list of tech giants designing their own AI chips. If successful, SeedChip could:
- •Reduce ByteDance's dependence on Nvidia hardware
- •Signal to other Chinese tech companies that custom silicon is viable
- •Strengthen Samsung's position in the AI chip foundry race
- •Accelerate China's broader push for semiconductor self-sufficiency
The aggressive timeline—receiving samples within six weeks—positions ByteDance to reduce dependence on Nvidia chips within months rather than years, if testing proves successful.
However, it's worth noting that ByteDance has publicly denied the reports. A company spokesperson told the Seoul Economic Daily that "information regarding the in-house chip development project is inaccurate." Despite the denial, industry observers note that such denials are common during sensitive negotiation periods.
This story is developing. Check back for updates on the ByteDance-Samsung partnership and broader AI chip market implications.
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