China dominates optical modules but US allies hold the upstream keys

DIGITIMESAugust 19, 2026en

The technology rivalry between the US and China is spreading into a new part of the AI supply chain: optical transceivers, the critical devices that connect AI servers to fiber-optic networks by converting electrical signals into optical ones and back again. Reuters reported in August that the US Federal Communications Commission is considering an import ban on new Chinese-made optical transceivers over cybersecurity and data-theft concerns.

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