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Digitimes September 21, 2026 By Lily Hess positive

ByteDance's China AI chip push hits substrate shortage

HuaweiHiSiliconAI / LLMSemiconductorsManufacturingSupply Chain
<p class="P1" data-start="3525" data-end="4052">China's fast-rising AI models are running into a compute supply bottleneck as demand for advanced packaging substrates surges, with ByteDance reportedly preparing to spend CNY100 billion (US$14.9 billion) a year on large-scale chip substrate purchases by 2030. Supply chain sources say the scramble for packaging substrate capacity is intensifying across Huawei HiSilicon, Hygon Information Technology, ByteDance, and major outsourced semiconductor assembly and test (OSAT) players, even as the industry races to expand output.
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