Microsoft Fights a Ban on Chinese Optics
The company argues the rule would slow the build-out it is paying for.
Microsoft is urging the Trump administration to shelve a proposed ban on US imports of certain Chinese-made optical transceivers used in AI data centres, Reuters reported on 10 November 2026 citing three people familiar with the matter. The restriction, which would sit under an FCC rule, was previously framed around risks of data theft, embedded malware and service disruption. Optical transceivers are the physical precondition for data movement inside AI clusters, and Chinese suppliers hold a substantial share. A ban would raise interconnection costs for US cloud operators and disrupt delivery schedules, putting cost pressure and decoupling on a collision course over a single component.
