Big Tech Company Reportedly Urges Trump Admin Not To Ban Chinese Data Center Parts
The Daily Caller ·
Key points
- Microsoft participated in White House discussions in September with officials from the Office of Science and Technology Policy and the National Security Council to raise supply chain concerns, though it declined to comment further.
- The FCC’s Covered List identifies equipment and services deemed to pose unacceptable national security risks, with the ban potentially covering new, high-throughput optical transceivers used inside data centers.
- Cleanview estimates show 35 Microsoft data centers under construction in the U.S. and 134 more in planning stages, illustrating the scale of ongoing infrastructure.
- Chinese firms account for about two-thirds of global optical transceiver sales, according to Counterpoint Research, highlighting competitive dynamics with American manufacturers like Coherent and Lumentum.
- A proposed Senate bill, S. 5548, would extend federal procurement limits to include these transceivers, provide five-year timelines for compliant sourcing, and maintain waivers where appropriate.
- InnoLight, a major Chinese producer, was added to the Pentagon’s list of Chinese military companies in June, underscoring the national-security framing of the policy debate.
- Industry figures warn that restricting advanced transceivers could slow the data-center rollout and affect America’s edge in AI deployment, prompting calls for diversification of supply chains.
Summary
Microsoft presses the administration not to bar Chinese-made optical transceiver parts used in AI data centers, arguing a ban could slow data-center expansion and hinder U.S. AI leadership. The FCC is weighing a ban as part of the Covered List, focusing on new transceiver models that handle high data throughput, amid concerns of data theft or disruption from Beijing. Key policymakers, industry groups, and suppliers are weighing impacts on supply chains, with some warning that the rollout could stall if restrictions bite. Legislation in the Senate aims to bar Chinese transceivers from top-security systems and extend federal procurement limits, signaling an intensified push to diversify supply sources despite potential short-term costs for American technology infrastructure.
This summary was written with AI. The full story has every detail.