ByteDance, the Chinese owner of TikTok, is close to a deal to buy custom chips from Taiwan’s MediaTek for its data centres, Bloomberg reported on 15 October 2026, citing people familiar with the matter. Neither company has confirmed the report, and Reuters said it “could not immediately verify” it.
What Bloomberg reported
According to Bloomberg, ByteDance “is close to an agreement to buy MediaTek Inc. data center semiconductors”. The two companies are “in advanced talks” over “the supply of bespoke chips that will help run ByteDance data centers,” the people said.
MediaTek “will provide an unspecified amount of Application Specific Integrated Circuits, or chips customized to work with a clients’ platform,” Bloomberg reported. These chips, known as ASICs, are designed for one customer’s specific tasks rather than general use.
Bloomberg said the deal would secure vital components for ByteDance while helping MediaTek compete with Qualcomm.
What we don’t know
The reports did not give the deal’s value, how many chips are involved or when supplies would start.
What this means
- ByteDance wants chips built for it. Custom chips would be designed around its own data-centre needs.
- MediaTek is growing beyond phones. A deal would expand its data-centre business.
- Not final. The talks are reported by unnamed sources and could still fall through.
Sources
- Bloomberg (via Bloomberg Law), “ByteDance in Talks to Secure MediaTek AI Chips for Data Centers”, 15 October 2026. https://news.bloomberglaw.com/capital-markets/bytedance-in-talks-to-secure-mediatek-ai-chips-for-data-centers
- Reuters (via Investing.com), “ByteDance nears chip supply deal with MediaTek for data centres, Bloomberg News reports”, 15 October 2026. https://www.investing.com/news/stock-market-news/bytedance-nears-chip-supply-deal-with-mediatek-for-data-centres-bloomberg-news-reports-4950432
