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.
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Business TimesUS ban on Chinese AI components unlikely to dent export engine
China exported US$61.6 million of optical transceivers to the US in June, just 8.7% of its global shipments, limiting the impact of any restrictions.
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The U.S. Federal Communications Commission (FCC) is drafting a draft to ban the import from China of electronic components that can be used in U.S. data centers, as reported on Tuesday ‘Bloomberg’. According to the sources consulted, the objective of the veto would be to import electronic components from centers ... Continue reading “The U.S. is studying banning the import of Chinese components for its AI centers” The post U.S. is studying banni…
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