Samsung Foundry Tipped to Produce ByteDance’s In-House AI Chip

Samsung Foundry could soon land another major AI client. China’s ByteDance, which is best known for TikTok, is reportedly exploring a custom AI processor and may turn to Samsung to manufacture it. If that happens, it would be another sign that Samsung’s chipmaking arm is becoming increasingly central to the AI supply chain.

Samsung could score major AI win with ByteDance chip deal

According to a report from Reuters, ByteDance is in talks with Samsung to produce an in-house AI chip codenamed SeedChip. The processor is said to focus on AI inference workloads. Sources claim ByteDance aims to receive sample chips by the end of March. Additionally, the company may manufacture at least 100,000 units this year, with a potential ramp-up to 350,000.

One detail that stands out is memory. The talks are said to include access to memory chip supplies. Which, as some of you know, remain in tight supply amid the global AI infrastructure boom. That’s where Samsung has an edge. Unlike many competitors, it can offer advanced foundry services and memory products under one roof. In a market where securing components is half the battle, that kind of integration matters. And this also gives Samsung an edge over the peers.

ByteDance has been steadily ramping up AI spending, reportedly investing heavily in chips from Nvidia while also developing its own silicon. Like Google, Amazon, and Microsoft, it appears eager to reduce reliance on external suppliers. If Samsung seals this deal, it would be a meaningful win for its foundry business at a time when competition in advanced chip manufacturing is only getting tougher.