The review, reported by the Financial Times on Wednesday, comes as China seeks greater control over critical technology supply chains amid an intensifying technological rivalry with the United States. The newspaper cited people familiar with the matter.
At the centre of the review is the use of Broadcom switches in data centres operated or controlled by state-backed organisations. The State-owned Assets Supervision and Administration Commission (SASAC), which oversees China’s state-owned enterprises, has spent recent weeks assessing how extensively Broadcom equipment is deployed across these facilities, according to the report.
Preliminary findings from the survey suggest that Broadcom switches could account for as much as 90% of the networking equipment currently in use at some state-controlled data centres, the Financial Times reported.
The findings could prompt SASAC to issue informal guidance encouraging state-run data centres to reduce their dependence on Broadcom switches. Such a move would fit into Beijing’s broader campaign to increase the use of Chinese-made semiconductors and artificial-intelligence technology across the public sector.
The effort reflects a wider policy drive in China to strengthen technological self-sufficiency and make critical industries less vulnerable to overseas supply disruptions. Beijing has increasingly emphasised domestic alternatives in strategic areas such as semiconductors, artificial intelligence, advanced computing and telecommunications.
China has also stepped up support for smaller specialised technology companies, often described by the government as “little giants”, as part of its effort to develop domestic suppliers capable of serving strategic industries.
Broadcom is one of several major suppliers of high-end networking switches in the Chinese market. Its products compete with equipment from US chipmaker Nvidia as well as China’s Huawei.
The treatment of Broadcom’s equipment would mark an important distinction from Nvidia’s position in China’s state-backed data-centre sector. Nvidia products have already been barred from state-backed data centres, according to the Financial Times, while Broadcom switches remain widely deployed.
The review also highlights the growing importance of networking equipment in the development of AI infrastructure. While much of the focus in the US-China technology rivalry has centred on advanced processors and AI accelerators, high-speed switches and other networking components are essential for connecting large numbers of computing chips inside modern data centres.
For Beijing, replacing foreign networking equipment could therefore form part of a broader effort to build AI infrastructure around domestic suppliers rather than relying on individual imported components.
The reported survey does not necessarily mean that China has made a final decision to prohibit or phase out Broadcom equipment. The Financial Times said SASAC may issue informal guidance based on its preliminary findings.
Reuters could not immediately verify the Financial Times report. Broadcom and SASAC could not immediately be reached for comment outside regular business hours.
Any move to reduce Broadcom’s presence in state-run data centres would add another layer to the increasingly fragmented global technology market, as Washington and Beijing pursue competing approaches to securing advanced computing and semiconductor supply chains.
For Chinese technology policymakers, the broader objective is to expand the role of domestic suppliers in strategic infrastructure. For foreign semiconductor and networking companies operating in China, the shift could increase pressure to compete in a market where government procurement decisions are becoming increasingly intertwined with national technology policy.