The Trump administration is drafting an order to restrict the import of new models of data center optical modules produced in China. The Federal Communications Commission (FCC) is formulating related measures to prohibit the import of such devices, which are used for high-speed data transmission within data centers via fiber optics. If the new regulations are implemented, InnoLight may be affected, as the company accounts for approximately 27% of the global data center optical module market. Meanwhile, American optical communication companies Coherent and Lumentum may benefit, and cloud service providers like AWS may need to increase procurement from non-Chinese suppliers.
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