China Reviews Broadcom Switch Use in State Data Centres

Chinese authorities have spent recent weeks examining how widely Broadcom's networking switches are used in state-controlled data centres, as Beijing intensifies efforts to reduce dependence on foreign artificial intelligence infrastructure and promote domestic suppliers.

The State-owned Assets Supervision and Administration Commission (SASAC), which oversees state-owned enterprises, is conducting the survey, according to people familiar with the matter. Preliminary findings indicate that Broadcom switches could make up as much as 90 per cent of the equipment deployed in these facilities.

On the basis of those early results, SASAC may issue informal guidance directing state-run data centres to scale back their use of Broadcom switches. The move would form part of Beijing's "domestic chips for domestic use" campaign, an effort to widen the adoption of Chinese-made semiconductors and AI technology across the public sector.

The review comes amid heightened technological rivalry with the United States, which has sharpened China's focus on self-sufficiency and supply-chain resilience. Beijing has extended particular support to smaller specialised firms it refers to as "little giants".

Broadcom competes with Nvidia and China's Huawei in selling high-end switches within the country. While Nvidia products have already been barred from state-backed data centres, Broadcom's switches remain widely deployed in those facilities.

Broadcom and SASAC could not be immediately reached for comment outside regular business hours.