The Trump Administration Proposes a Ban on Chinese-Made Optical Transceivers for Data Centers

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The Trump administration is advancing a new rule targeting Chinese data center optical transceivers, with the FCC reportedly drafting a ban on their imports. This action aligns with broader CFT efforts to strengthen national security measures. InnoLight, a major supplier with a 27% global market share, could face significant disruption. U.S. companies such as Coherent and Lumentum may benefit, while cloud providers may shift procurement away from China. The proposed rule could also indirectly impact sectors under scrutiny for crypto-related restrictions.

Odaily Planet Daily reports, according to four informed sources, the Trump administration is drafting a ban to restrict the import of new-generation data center components manufactured in China. The U.S. Federal Communications Commission (FCC) is developing measures to prohibit the import of new-model optical transceivers from China. These devices are used for high-speed data transmission over fiber optics within data centers. The White House and the FCC have not responded to requests for comment.

If the new regulations take effect, Innolight, one of the world’s leading optical module suppliers, could be impacted. According to Counterpoint Research, Innolight holds approximately 27% of the global data center optical module market. Meanwhile, U.S. optical communications companies Coherent (COHR) and Lumentum (LITE) may benefit, and cloud providers such as AWS might need to increase procurement from non-Chinese suppliers. (Reuters)

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