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China's SASAC probes Broadcom switch use in state data centers
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According to a Financial Times report on Wednesday, citing sources, Chinese authorities are investigating the use of Broadcom hardware in state-owned data centers. The probe, conducted by the State-owned Assets Supervision and Administration Commission (SASAC) in recent weeks, aims to assess the deployment of Broadcom switches. The investigation found that Broadcom switches may account for up to 90% of equipment in use. Based on these preliminary findings, SASAC may issue non-binding guidance to reduce the use of Broadcom switches as part of Beijing's 'domestic chips for domestic use' campaign. This initiative seeks to expand the public sector's adoption of Chinese-made semiconductors and AI technologies, reducing reliance on foreign AI infrastructure amid US-China competition. Reuters could not independently verify the report. Broadcom and SASAC did not immediately respond to requests for comment. The report notes that Broadcom, along with Nvidia and China's Huawei, sells high-end switches domestically, and while Nvidia products are already banned from state data centers, Broadcom switches remain widely present.
Source report
According to a report by the Financial Times on Wednesday, citing sources familiar with the matter, Chinese authorities are investigating the use of Broadcom hardware in state-owned data centers. The move is aimed at boosting domestic producers and reducing reliance on foreign artificial intelligence infrastructure.
Amid intensifying competition between China and the United States, Beijing has increased its focus on technological self-sufficiency and supply chain resilience, with particular support for specialized small and medium-sized enterprises it calls "little giants."
Key Findings
- The State-owned Assets Supervision and Administration Commission (SASAC), which oversees state-owned enterprises, has in recent weeks surveyed the deployment of Broadcom switches in state data centers.
- The investigation found that Broadcom switches may account for up to 90% of equipment in use.
- Based on preliminary findings, SASAC may issue informal guidance instructing state data centers to reduce their use of Broadcom switches, as part of Beijing's "domestic chips for domestic use" campaign aimed at expanding public sector adoption of Chinese-made semiconductors and AI technology.
Industry Context
- Broadcom competes with Nvidia and China's Huawei in domestic sales of high-end switches.
- While Nvidia products have already been banned from state data centers, Broadcom switches remain widely present in these facilities.
Reuters was unable to independently verify the report. Broadcom and SASAC did not immediately respond to requests for comment outside of regular business hours.
Source
rtrsWestern