Beijing Review of Broadcom Switches Tests Shrinking China Revenue Base
Beijing’s state-asset regulator is surveying Broadcom switches in state-controlled data centers, according to a Financial Times report relayed by Reuters. China including Hong Kong fell from 32% of Broadcom revenue in fiscal 2023 to 17% in fiscal 2025, even as total revenue nearly doubled. The review is preliminary and could lead to informal guidance, but it does not yet constitute a ban or finding.
Beijing’s state asset watchdog is examining Broadcom networking switches used in government-controlled data centers, according to a report Reuters passed along from the Financial Times. The inquiry is early-stage; it might produce informal guidance rather than a prohibition or formal conclusion.
Broadcom’s China and Hong Kong revenue share dropped from 32% in fiscal 2023 to 17% in fiscal 2025, while overall sales almost doubled. Its China revenue slipped from $11.53 billion to $11.16 billion, so growth came from other regions. State-owned sites may rely heavily on Broadcom switches, though private operators such as Alibaba and ByteDance reportedly would not be covered.
If informal guidance follows, state-linked data-center operators may face higher switching costs or slower upgrades, while domestic chip and equipment suppliers could gain opportunities. Private cloud and AI firms may see less direct disruption. Consumers and businesses relying on those data centers could experience changes in service costs, performance, or availability, though the review’s preliminary nature means any effects remain uncertain.