Chinese authorities are investigating the use of Broadcom hardware in state-backed data centers as part of a push for technological self-sufficiency. The survey, led by SASAC, found Broadcom switches may constitute up to 90% of equipment in use, potentially leading to guidance to reduce their deployment.
The investigation into Broadcom's hardware use in Chinese state data centers highlights Beijing's intensified efforts to achieve technological self-sufficiency, potentially impacting global semiconductor supply chains and the market share of foreign AI infrastructure providers.
Chinese authorities are scrutinizing the deployment of Broadcom's hardware in state-backed data centers as part of a broader initiative to enhance domestic technological capabilities and supply chain resilience, according to a Financial Times report citing individuals familiar with the matter. The State-owned Assets Supervision and Administration Commission (SASAC), which oversees state-owned enterprises, has reportedly spent recent weeks surveying the extent to which Broadcom's switches are used across these facilities.
The survey's preliminary findings suggest that Broadcom switches could constitute as much as 90% of the equipment currently in operation. Based on these findings, SASAC may issue informal directives to state-run data centers, encouraging them to decrease their reliance on Broadcom switches. This move aligns with Beijing's "domestic chips for domestic use" campaign, aimed at increasing the adoption of Chinese-made semiconductors and AI technology within the public sector.
While Nvidia's products have already been prohibited from state-backed data centers, Broadcom's switches remain prevalent. Both Broadcom and Nvidia, alongside China's Huawei, supply high-end switches within the country. Reuters could not immediately verify the report, and Broadcom and SASAC were unavailable for comment outside of regular business hours.
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