Possible U.S. Ban on Chinese Optical Components Would be 'Lose-Lose Situation'

Dow Jones
08/05

0831 GMT - If the potential U.S. ban on new Chinese optical transceivers targets all next-generation products from Chinese suppliers, that would be "a lose-lose situation," Nomura analysts say in a research note. Should the restrictions only target made-in-China products, there would be little impact on Chinese players as they have expanded production capacity overseas. However, if all new products by Chinese suppliers are banned, that could affect the global AI data-center build-out and further increase deployment costs, they say. "The global optical communications sector is highly globalized and interdependent, and China's control of certain materials could also create bottlenecks in the already supply constrained market," Nomura adds.

 

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