China Reviews Broadcom Hardware in State-Backed Data Centers

The State-owned Assets Supervision and Administration Commission (SASAC) of China is reviewing the deployment of Broadcom switches within state-backed data centers. A recent survey by the agency revealed that Broadcom equipment may account for as much as 90% of the networking hardware in some state-owned companies.

This review supports Beijing's broader domestic chips for domestic use strategy, which aims to achieve technological self-sufficiency amid ongoing tensions with the United States over semiconductor infrastructure and artificial intelligence. While the Chinese government has not announced a formal ban, the findings are expected to lead to informal guidance urging state enterprises to transition their procurement to domestic suppliers.

Potential beneficiaries of this shift include Chinese networking firms such as Huawei, H3C Technologies, and Ruijie Networks. State-backed facilities have previously implemented similar restrictions on the use of Nvidia products to reduce dependence on foreign technology.