People familiar with the matter revealed that the US government is drafting a ban to ban the import of new Chinese data center components. According to CICC, the core function of the optical module is photoelectric signal conversion, and it itself is not responsible for business data storage. Compared to active devices, their risk boundaries and attack capabilities are significantly different. Therefore, whether the “FCC security logic cited by sources” can be established, and whether the proposed restrictions are in line with the principle of necessity, are questionable in themselves. Furthermore, starting in 2020, similar stories have been told for many rounds. The market has always feared that the share of Chinese manufacturers will be taken away by North American rivals, but discussions have been scarce in the past two years — because it has been proven over a few years that even if industrial policy continues to lean towards the local US supply chain, the share of Chinese manufacturers has not declined but increased. CICC said that, therefore, the short-term trading of this matter is emotion. In the medium term, we are looking at rules and standards, and the long-term competition is still about products, yield, and delivery. The policy can change the shipping address, but it may not change who is most likely to make optical modules.

People familiar with the matter revealed that the US government is drafting a ban to ban the import of new Chinese data center components. According to CICC, the core function of the optical module is photoelectric signal conversion, and it itself is not responsible for business data storage. Compared to active devices, their risk boundaries and attack capabilities are significantly different. Therefore, whether the “FCC security logic cited by sources” can be established, and whether the proposed restrictions are in line with the principle of necessity, are questionable in themselves. Furthermore, starting in 2020, similar stories have been told for many rounds. The market has always feared that the share of Chinese manufacturers will be taken away by North American rivals, but discussions have been scarce in the past two years — because it has been proven over a few years that even if industrial policy continues to lean towards the local US supply chain, the share of Chinese manufacturers has not declined but increased. CICC said that, therefore, the short-term trading of this matter is emotion. In the medium term, we are looking at rules and standards, and the long-term competition is still about products, yield, and delivery. The policy can change the shipping address, but it may not change who is most likely to make optical modules.