China Audits State-Owned Data Centers; Broadcom Switch Penetration Hits 90% — BigGo Finance

The Chinese government has launched a critical infrastructure investigation into state-owned data centers, targeting U.S. chipmaker Broadcom’s dominant position in the high-end switch market. According to the Financial Times, China’s State-owned Assets Supervision and Administration Commission (SASAC) has in recent weeks begun tallying the number of Broadcom switches deployed in state-owned enterprise data centers, with preliminary results showing penetration as high as 90% — a figure that could prompt regulators to move to reduce reliance on the American chip giant.

High-end switches are the core equipment enabling data centers to transmit massive volumes of data at high speed. As demand for artificial intelligence (AI) training among Chinese enterprises surges, this market has become a strategic battleground. SASAC’s investigation is viewed as part of Beijing’s “domestic chips for domestic use” policy, which aims to increase the public sector’s adoption of locally produced…