Broadcom logo is seen in this illustration taken June 11, 2026. REUTERS
Sept 23 (Reuters) – Chinese authorities are examining the use of Broadcom’s hardware in state-backed data centres as part of a drive to boost domestic producers and reduce reliance on foreign AI infrastructure, the Financial Times reported Wednesday, citing people familiar with the matter.
Amid rivalry with the US, China has sharpened its focus on technological self-sufficiency and supply-chain resilience and provided particular support for smaller specialised companies it calls little giants.
The State-owned Assets Supervision and Administration Commission (SASAC), which oversees state-owned enterprises, has spent recent weeks surveying how extensively Broadcom’s switches are deployed across state-controlled data centres, the report said.
Reuters could not immediately verify the report. Broadcom and SASAC could not be immediately reached for comment outside regular business hours.
The survey found that Broadcom switches could account for as much as 90% of the equipment in use, the report added.
Based on those preliminary findings, SASAC may issue informal guidance directing state-run data centres to scale back their use of Broadcom switches as part of Beijing’s “domestic chips for domestic use” campaign — an effort to expand adoption of Chinese-made semiconductors and AI technology across the public sector, the newspaper reported.Broadcom, along with Nvidia (NVDA.O) and China’s Huawei, sells high-end switches within the country. Although Nvidia products have already been barred from state-backed data centres, Broadcom’s switches remain widely present in these facilities, the report added.
Reporting by Devika Nair in Bengaluru; Editing by Rashmi Aich and Harikrishnan Nair
