Trump Administration Plans Ban on Chinese Data Center Components

The Trump administration is reportedly drafting a ban on U.S. imports of new Chinese data center components, which could make things more expensive for American hyperscalers and reshape the supply chain.

According to a Reuters report, the Federal Communications Commission (FCC) is working on a measure to bar imports of new Chinese optical transceivers, which allow data to travel across fiber-optic cables at light speed inside data centers.

A ban would likely push American cloud giants like Amazon Web Services toward U.S.-based alternatives Coherent and Lumentum, both of which stand to benefit directly. COHR stock rallied as much as 13% in pre-market trade, while LITE stock jumped over 10%.