Microsoft urges President Trump to shelf optical transreceiver China import ban

The Trump administration is being lobbied by Microsoft to stop a planned ban on optical transceivers from China, Reuters has reported, citing three people familiar with the matter. Optical transceivers are fiber optic parts that help to connect AI data centers. Microsoft believes the ban could delay data center projects across the US cloud industry. The part that connects the chips Optical transceivers turn electrical signals into light and send it through fiber-optic cables. At the other end, they turn the light back into electrical signals. These devices connect servers, routers and switches in data centers. Large AI data centers can need millions of them. US officials are concerned that China could use these devices to steal data, install harmful software or disrupt services at American facilities.

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