UB-SMoE: Universally Balanced Sparse Mixture-of-Experts for Resource-adaptive Federated Fine-tuning of Foundation Models

Heterogeneous LoRA-rank methods address system heterogeneity in federated fine-tuning of foundation models by assigning client-specific ranks based on computational capabilities. However, these methods achieve only marginal computational savings, as dense feed-forward computations dominate. Sparse Mixture-of-Experts (SMoE) provides a promising alternative through conditional computation, yet we identify that its naive application to heterogeneous federated settings introduces two critical discordances: (i) expert utilization imbalance and (ii) nondifferentiability of Top-K routing. Our convergence analysis demonstrates that these discordances lead to degraded convergence, particularly for resource-constrained clients. To address these challenges, we propose Universally Balanced Sparse Mixture-of-Experts (UB-SMoE), which introduces Dynamic Modulated Routing (DMR) to rebalance expert utilization, and Universal Pseudo-Gradient (PG) to reconstruct learning signals for non-activated experts. These mechanisms form a self-reinforcing cycle that maintains expert viability across heterogeneous clients. Experiments on benchmarks show that UB-SMoE achieves up to 45.0% computational reduction on low-resource clients while improving their performance by 8.7× compared to existing heterogeneous LoRA-rank methods. Recently, A 3 SMoE (Tran et al., 2025) integrated Sparse Mixture of Experts (SMoE) (Shazeer et al., 2017) into federated fine-tuning of FMs, offering a natural mechanism for 1