China is reviewing the use of switches made by Broadcom Inc. in state-backed data centres, according to a report by the Financial Times, in a move that could signal a push to cut dependence on U.S. networking hardware.
The State-owned Assets Supervision and Administration Commission (SASAC) carried out the survey in recent weeks, the FT reported, citing people familiar with the matter. The findings could lead to informal guidance urging state enterprises to reduce their reliance on Broadcom products.
At some state-owned companies, Broadcom switches could account for as much as 90% of networking equipment, the survey found, the paper said.
Broadcom, along with Nvidia Corp. and Huawei Technologies Co. Ltd., supplies high-end data-centre switches in China. State-backed facilities have already been barred from using Nvidia products, according to the report.
The review is consistent with Beijing's broader drive for "domestic chips for domestic use," a policy framework that would advantage Chinese suppliers including Huawei, H3C Technologies Co. Ltd. and Ruijie Networks Co. Ltd.
No formal announcement has been made about the results of SASAC's review or any forthcoming policy changes.
