Qualcomm in Talks with ByteDance for Custom Chip Design Services

On June 24, four sources revealed that Qualcomm (QCOM.O) is in discussions with ByteDance to provide chip design services. If negotiations are successful, ByteDance would become an early customer of Qualcomm's chip design services business. However, sources emphasized that the negotiations are still ongoing and the outcome is uncertain. It remains unclear whether the talks will ultimately lead to a chip design and manufacturing agreement, and ByteDance may also seek other partners. Further details about the chip are not yet clear. One source mentioned that the discussions involve the design of a Video Processing Unit (VPU), with the aim of starting mass production by the end of this year.