Broadcom Faces China Data Center Threat as Beijing Finds Its Switches in Up to 90% of State-Owned Firms: Report
Chinese authorities are reportedly probing the use of hardware from Broadcom Inc. (NASDAQ: AVGO ) in state-backed data centres. China’s State-owned Assets Supervision and Administration Commission (Sasac) has been evaluating the prevalence of Broadcom switches in state-controlled data centres to boost domestic reliance, the Financial Times reported Tuesday. These high-end switches are essential for transmitting large volumes of data at high speeds in data centres. The investigation is part of Sasac’s “domestic chips for domestic use” campaign, which aims to boost the utilization of homegrown semiconductors and AI products across China’s public sector. Preliminary findings indicate that Broadcom switches could be present in up to 90% of state-owned companies. This high penetration rate might prompt Sasac to issue informal guidance to decrease the use of Broadcom switches in domestic data centres, as per the report. The commission is also investigating whether Broadcom has exploited its market leader status to bundle other products or enforce large purchase requirements. The U.S.-tech giant’s alleged tactics are said to have limited Chinese firms such as H3C
Chinese authorities are reportedly probing the use of hardware from Broadcom Inc. (NASDAQ: AVGO ) in state-backed data centres. China’s State-owned Assets Supervision and Administration Commission (Sasac) has been evaluating the prevalence of Broadcom switches in state-controlled data centres to boost domestic reliance, the Financial Times reported Tuesday. These high-end switches are essential for transmitting large volumes of data at high speeds in data centres.
The investigation is part of Sasac’s “domestic chips for domestic use” campaign, which aims to boost the utilization of homegrown semiconductors and AI products across China’s public sector. Preliminary findings indicate that Broadcom switches could be present in up to 90% of state-owned companies. This high penetration rate might prompt Sasac to issue informal guidance to decrease the use of Broadcom switches in domestic data centres, as per the report. The commission is also investigating whether Broadcom has exploited its market leader status to bundle other products or enforce large purchase requirements.
-tech giant’s alleged tactics are said to have limited Chinese firms such as H3C Technologies and Ruijie Networks from sourcing switches from other suppliers, including Huawei, the publication reported. Broadcom did not immediately respond to ’s request for comments. Read Also: Alibaba Just Supercharged its AI Ambitions: New Zhenwu V900 AI Chip Promises 3X Performance, Targets 20GW Data Center Expansion by 2032 Nvidia, AMD Caught Amid China’s Domestic Tech Push This development comes as part of China’s broader push to strengthen its domestic AI infrastructure. Broadcom, Nvidia Corp.
(NASDAQ: NVDA ) and Huawei sell high-end switches in China, with state-backed data centers still using a significant number of Broadcom switches despite restrictions on Nvidia products, as per FT. Last week, Chinese tech giant Huawei unveiled over 10 new chipsets for AI computing infrastructure. The move is seen as a bid to challenge the dominance of Nvidia, Advanced Micro Devices (NASDAQ: AMD ), and Intel Corp. (NASDAQ: INTC ) in the market.
12 billion yuan ($912 million) in its IPO, as investors bet domestic chipmakers can challenge Nvidia’s dominance in China’s AI accelerator market. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. Read Also: Trump May Hold Off on Major Taiwan Arms Deal Until Year-End as China's Xi Jinping Visits Washington: Report Image via Shutterstock