China Surveys Broadcom Switch Usage for Potential Domestic Replacement

Key Facts

1China's SASAC conducted a survey finding Broadcom's switch penetration in state-owned enterprises is as high as 90%.

2Chinese authorities may issue informal guidance to reduce reliance on Broadcom equipment in favor of domestic alternatives like Huawei.

Amid intensifying technological competition between Washington and Beijing, Chinese authorities have initiated steps to reduce reliance on US suppliers within critical infrastructure. China's State-owned Assets Supervision and Administration Commission (SASAC) conducted a survey revealing that Broadcom's switch penetration in state-owned enterprises is as high as 90%. According to reports, authorities may issue informal guidance to phase out Broadcom equipment in favor of domestic alternatives such as Huawei, H3C, and Ruijie Networks.

This move signals significant revenue risks for Broadcom, as the Chinese market remains a vital component of its global data center networking sales. Per market data, US firms are facing increasing hurdles in maintaining market share within China's state-affiliated institutions as Beijing accelerates its 'domestic chips for domestic use' campaign. These developments highlight the growing prominence of local players like Huawei, which are positioned to provide sovereign networking solutions for large-scale data clusters.

In the markets, AVGO shares stood at $354.5295 (close September 23, 2026), having hit a day high of $362.9. Investors are closely monitoring for any formal directives from SASAC and will look toward upcoming US Industrial Production data for broader cues on how trade tensions are impacting the semiconductor sector's outlook.