Network Sovereignty: China Purges Broadcom Chips from State Data Centers

The technological curtain between East and West is becoming impenetrable. On September 23, 2026, Chinese authorities initiated a massive review of the use of networking equipment from the American corporation Broadcom in state data centers.

This step demonstrates a crystal-clear macroeconomic strategy: Beijing is systematically shedding its critical dependence on US IT infrastructure. The industry has realized that the bottleneck of AI clusters is not only graphics processing units (GPUs) but also high-speed interconnect switches. By squeezing Broadcom out of the state sector, China is freeing up a niche for local equipment manufacturers (including Huawei). The geopolitical fragmentation of the semiconductor market is accelerating, forcing Western vendors to permanently forget about profits from multi-billion dollar Chinese contracts.

Source: Chinese Government / Broadcom / Reuters