ByteDance eyes mediatek's AI chips for data center expansion

ByteDance Ltd. is nearing a deal to acquire MediaTek Inc.'s data center semiconductors, a move that would provide critical components for TikTok’s parent company. The agreement is expected to bolster ByteDance’s capabilities in the AI-driven data center market while offering MediaTek a competitive edge against Qualcomm Inc. The potential acquisition comes amid heightened competition in the semiconductor industry, where AI chip demand is surging. MediaTek, a leading Taiwanese chipmaker, has been actively expanding its presence in the data center sector. The deal is seen as a strategic step for ByteDance to secure its supply chain amid growing reliance on AI technologies. Industry analysts suggest the transaction could reshape the landscape of AI chip manufacturing and deployment. The exact terms of the deal remain undisclosed, though sources indicate it is expected to close by year-end 2026.