Chinese regulators are surveying Broadcom networking hardware across state-controlled data centres as Beijing promotes domestic technology suppliers. The Financial Times reported that Broadcom equipment may account for up to 90% of networking infrastructure at certain government-owned enterprises, although Reuters could not independently confirm the report. No official prohibition has been announced, but the review could lead to informal guidance encouraging state-controlled customers to reduce their dependence on Broadcom over time. Broadcom shares fell 0.3% in Wednesday premarket trading, after closing at $364.54 on Tuesday. The scrutiny targets networking hardware used to connect servers and move large volumes of data in AI computing clusters. Huawei, H3C Technologies and Ruijie Networks were identified as possible domestic alternatives. Broadcom reported third-quarter AI semiconductor revenue of $16.7 billion, up 221% year on year, forecast $21.7 billion for the fourth quarter and raised its fiscal 2027 AI semiconductor revenue target to about $115 billion. Its AI expansion is centred on custom accelerators and networking products for technology firms including Meta, OpenAI and Anthropic.