FCC Drafts Ban on Chinese Data Center Optical Modules; Xinyuan Faces 27% Market Share Impact

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According to Reuters, the Trump administration is drafting a ban on U.S. imports of new Chinese data center optical modules, with the FCC set to implement it by end of 2026. The measure aims to prevent data theft, malware injection, and disruption to U.S. data centers. The ban could primarily affect Xinyuan Upholding (which holds 27% of the global data center optical module market); the company was added to the Department of Defense's military-linked enterprises list in June. U.S. cloud providers like AWS may be forced to shift to alternative suppliers including Coherent and Lumentum, raising costs. The FCC has previously imposed similar restrictions on Chinese-made drones, routers, robots, and inverters.
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