Microsoft opposes possible FCC restrictions on Chinese optical transceivers

Microsoft and the Information Technology Industry Council are lobbying against a possible FCC ban on Chinese optical transceiver imports, Tom's Hardware reported, citing Reuters. The modules convert electrical signals into light to connect computing equipment over fiber, including AI chips and server racks. Chinese companies supply 66% of the global market. The industry group warned that restrictions could stall data-center deployment, while security concerns include potential data theft and remote disruption. One compromise under consideration would restrict only modules capable of 3.2 terabits per second, whose production is not expected to expand until 2028.