Opinion | US

US-China tech war is coming for AI’s plumbing

The possible ripple effects of an FCC ban on Chinese optical transceivers show any US-China tech decoupling will be slow and costly

The United States could end up creating problems for itself by abruptly banning Chinese optical transceivers without alternatives in place. While avoiding long-term dependence on China, such a move would disrupt the functioning of data centres and cloud networks in the short term. US-based suppliers such as Coherent and Lumentum produce optical modules of comparable quality, but are unlikely to be able to match Chinese suppliers on scale.

Given the sensitivity of optical modules to temperature and dirt, they must be repaired or replaced frequently. Their compatibility with the rest of the hardware infrastructure is another factor that makes sudden substitution of these components unfeasible. As a result, major hyperscalers in the US such as Amazon and Microsoft would be likely to suffer from disrupted supplies of optical modules.