US Considers Ban on Chinese Networking Tech in Data Centers
The US Federal Communications Commission is working on a ruling to ban the import of Chinese-made optical transceivers used in data centers. The move is aimed at preventing potential data theft and disruptions. The ban is expected to take effect by the end of 2026. China has threatened to respond if necessary.
Key points
- The US Federal Communications Commission (FCC) is working on a ruling to ban the import of Chinese-made optical transceivers used in data centers.
- The ban is aimed at preventing potential data theft and disruptions, with the FCC citing concerns over the components' security.
- The ruling is expected to take effect by the end of 2026, with China threatening to respond if necessary.
- Several US-based manufacturers, including Lumentum and Apple Optoelectronics, currently produce optical transceivers, but Innolight, a Chinese company, dominates the global market with a 27% share.
The US Federal Communications Commission (FCC) is working on a ruling to ban the import of Chinese-made optical transceivers used in data centers. The move is aimed at preventing potential data theft and disruptions, with the FCC citing concerns over the components' security. The ruling is expected to take effect by the end of 2026, with China threatening to respond if necessary.
The ban is part of a broader effort to secure the US data center supply chain, with AI policy expert Divyansh Kaushik of Beacon Global Strategies stating that transceivers 'pose a risk' to data center operations. While several US-based manufacturers, including Lumentum and Apple Optoelectronics, currently produce optical transceivers, Innolight, a Chinese company, dominates the global market with a 27% share.
This is not the first industry-wide ban imposed by the FCC in recent months. The US has banned Huawei products since 2019 and has enforced several other bans affecting major Chinese or China-connected companies. The outcome of this ban remains to be seen, but it is clear that the US is taking steps to secure its data center infrastructure.
Sources
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