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China is reviewing the use of Broadcom switches in state-backed data centres as Beijing intensifies efforts to reduce dependence on foreign technology and promote domestic semiconductor and networking equipment suppliers, according to the Financial Times.
The State-owned Assets Supervision and Administration Commission (SASAC), which oversees China's state-owned enterprises, has reportedly surveyed companies in recent weeks to determine how extensively Broadcom equipment is deployed across their data centres.
The review found that Broadcom switches may represent as much as 90% of the networking equipment used by some state-owned companies, the FT reported, citing a person familiar with the findings. The results could lead Chinese authorities to issue informal guidance encouraging companies to reduce their reliance on products supplied by the U.S. chipmaker.
Broadcom, Nvidia and China's Huawei are among the major suppliers of high-performance switches used in Chinese data centres. However, state-backed facilities have already faced restrictions on the use of Nvidia products, according to the report.
Any move targeting Broadcom equipment would mark another step in China's broader campaign to strengthen technological self-sufficiency amid ongoing tensions with the United States over semiconductors, artificial intelligence infrastructure and advanced computing technology.
Beijing has increasingly promoted a "domestic chips for domestic use" strategy, encouraging state-controlled organizations and companies to adopt locally developed technology where possible.
A reduction in Broadcom's presence at state-owned data centres could create additional opportunities for Chinese networking equipment manufacturers. Potential beneficiaries include Huawei, H3C Technologies and Shenzhen-listed Ruijie Networks, which compete in China's expanding market for data-centre infrastructure.
The reported review does not necessarily mean China will impose a formal ban on Broadcom switches. However, informal procurement guidance could gradually shift spending toward domestic suppliers as Beijing seeks to build a technology ecosystem that is less dependent on U.S. companies.
