China surveys Broadcom switch use in state data centers, FT reports

China is reviewing Broadcom $AVGO switch use across state-backed data centers, with preliminary findings suggesting they may account for as much as 90% of installed equipment.

This development marks a significant escalation in Beijing’s **"domestic chips for domestic use" campaign**. The preliminary audit findings will likely lead to **informal guidance** directing Chinese state-run firms to scale back or replace their reliance on Broadcom equipment. SASAC is also investigating whether Broadcom leveraged its dominant market share to enforce anti-competitive practices like product bundling.

[Source](https://www.ft.com/content/b97dde39-7813-4a51-8176-3699e2a468b1?syn-25a6b1a6=1)