Broadcom declined to comment on reports that China is banning security software purchases from VMware by Broadcom. Here’s what VMware partners need to know.
Broadcom is staying quiet on reports that China is banning security software purchases from VMware by Broadcom inside the country as geopolitical tensions remain high.
“It could be a blow for us as we’re always trying to get better traction inside (the Asia-Pacific region) and China,” said one top executive from a European VMware by Broadcom global partner.
“We haven’t come up against anything concrete yet around a client saying they’re banning American or other Western technology purchases yet, but it’s definitely burdensome trying to sell security sometimes from VMware or a Palo Alto (Networks) to someone in China,” said the executive, who did not wish to be identified.
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Chinese authorities have told domestic companies to stop using cybersecurity software made by over a dozen firms from the U.S. and Israel, citing national security concerns, according to a report by Reuters.
The companies whose security software has been reportedly banned include VMware by Broadcom, Cato Networks, Claroty, CrowdStrike, Check Point Software Technologies, Fortinet, Imperva, McAfee, Palo Alto Networks, SentinelOne, Rapid7 and Google-owned Mandiant.
VMware’s flagship offering, VMware Cloud Foundation (VCF), can include a slew of cybersecurity tools, security operations and management technology.
When CRN reached out to Broadcom-VMware for comment, the tech giant declined to comment on the matter regarding China.
“We have nothing to add to the China story at this time,” said a Broadcom spokesperson to CRN.
Some of the companies reportedly being banned in China have a large physical presence or several offices in China.
Broadcom has approximately six offices and R&D facilities in China, according to its website, including in huge cities like Beijing, Shanghai, Shenzhen and Nanjing.
However, other companies such as CrowdStrike and SentinelOne do not have business or offices in China.
The Cyberspace Administration of China and the Ministry of Industry and Information Technology have not responded to comment on the matter.
Ban Could Affect VMware Software Sales
Known as China’s Xinchuang initiative, the Chinese government is seeking a 2027 deadline for locally owned companies to replace all foreign software with local IT alternatives, according to the report.
Palo Alto, Calif.-based Broadcom is a $72 billion technology giant that designs, develops and supplies a broad range of semiconductor, enterprise software and security offerings across the globe, including in China.
For Broadcom’s fourth fiscal quarter 2025, the company reported $18 billion in total revenue, up 28 percent year over year.
The company’s VMware software and security sales are part of Broadcom’s Infrastructure Software Group (ISG).
Broadcom’s ISG generated $6.9 billion in revenue, representing 19 percent sales growth year over year and above the company’s outlook of $6.7 billion.
Broadcom ended 2025 with $73 billion of infrastructure software backlog, up from $49 billion in 2024.
The executive from the global VMware by Broadcom partner said he has not heard of an official ban from his Chinese customers yet.
“It may have impact on our future expansion efforts there, but we’re still waiting to see if anything official comes out,” he said. “I think the majority of VMware partners not inside China don’t really play in the region for a variety of reasons. We play a bit, and would like to play more, but it’s difficult because of geopolitical things like this.”
Broadcom CEO Hock Tan said infrastructure software revenue is slated to grow by a low double-digit percentage this year.
“(In 2026) we expect AI revenue to continue to accelerate and drive more software growth and non-AI semiconductor revenue to be stable,” Tan said during Broadcom’s fourth-quarter 2025 financial earnings call.
“Infrastructure software revenue will continue to be driven by VMware growth at low double digits,” he said. “For first quarter 2026, we expect consolidated revenue of approximately $19.1 billion, up 28 percent year over year.”
The company’s stock has not been impacted by the report of the China news.
Broadcom stock is trading at $341 per share as of Tuesday morning, roughly flat growth compared with one month ago.
