Trump Administration Drafting Ban on Chinese Data Center Devices: Reuters
The draft would target optical transceivers and could raise costs for U.S. cloud operators, as Chinese supplier Innolight holds a 27% market share.
- The Federal Communications Commission is drafting a ban on U.S. imports of new Chinese optical transceivers to protect infrastructure undergirding the AI boom, according to four sources familiar with the matter.
- Seeking to avoid Huawei-style deep infrastructure risks, the FCC utilizes its 'Covered List' to bar foreign equipment posing national security threats, having previously restricted Chinese drones, routers, and power inverters.
- A ban would likely impact Zhongji Innolight, which holds a 27% global market share, forcing U.S. cloud firms like Amazon Web Services to transition toward domestic alternatives Coherent and Lumentum.
- "Transceivers definitely pose a risk," said Beacon Global Strategies expert Divyansh Kaushik, while the Chinese embassy urged the United States to "heed the objective and rational voices" of business communities.
- Officials hope to publish the restriction this year, though the draft remains subject to modification; Washington has encouraged allies like Britain to emulate the curbs, potentially widening impact on Chinese vendors.
21 Articles
21 Articles
Applied Optoelectronics Rockets 17%, Coherent Climbs 11%, Lumentum Gains 6% on Reported U.S. Ban of Chinese Optics
A reported U.S. ban on Chinese data center optical hardware sent a handful of domestic suppliers rocketing higher, but the proposal is still a draft and could be softened or dropped entirely before the year-end enforcement target.
The U.S. telecommunications agency FCC is working on an embargo on optical transceivers from China. Beijing is threatening to take countermeasures, the shares of American competitors are rising prematurely.
(Seoul = Yonhap News) Reporter Oh Su-jin = The Donald Trump administration [is] a bill to ban the import of certain Chinese-made parts used in data centers to strengthen national security...
Trump administration drafting ban on Chinese data center devices, sources say
The Trump administration is drafting a ban on U.S. imports of new models of Chinese data center components, four people familiar with the matter told Reuters, as it seeks to protect the infrastructure that undergirds the AI boom.
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