The US government is drafting a new ban that would block imports of China-made next-generation optical transceivers for data centers, according to a BlockBeats report published on Aug. 5.
People familiar with the matter said the Federal Communications Commission, or FCC, is preparing the restrictions. US officials plan to announce and put the ban in place during 2026. The measure is still being discussed, and it could still be revised or shelved.
Optical transceivers sit at the center of AI data transfer
Optical transceivers are a core component of optical modules. They convert electrical signals into optical signals and back, and they are a key piece of hardware for high-speed data transmission in AI data centers.
The report said the global optical module supply chain could be affected if the ban takes effect. It also said Eoptolink, one of the leading suppliers in the sector, could face pressure.
Replacement capacity in the US may not be enough
Counterpoint Research data cited in the report shows that Eoptolink currently holds about 27% of the global market for data-center optical transceiver modules.
A previous report by the Information Technology and Innovation Foundation said US-based suppliers Coherent and Lumentum do not have enough production capacity to fully replace Chinese suppliers.
Costs for US cloud firms could rise
The report added that the proposed measure could push up costs for US cloud service companies. Large cloud computing firms including Amazon may need to switch purchases of optical communications equipment to US suppliers to meet demand from AI data center expansion.
In the market's view, US restrictions on Chinese optical communications component imports show that competition over AI infrastructure is extending beyond chips and into the broader data-center supply chain, including optical modules, power equipment, and server components.