Microsoft urges halt to proposed Chinese transceiver restriction

Microsoft has urged the Trump administration to halt a proposed restriction on imports of new Chinese optical transceivers, saying the measure could disrupt components needed for US AI data-center construction. The Federal Communications Commission is considering the restriction, but has not publicly confirmed its scope or made a decision.

Three people familiar with the matter said Microsoft and other companies and trade groups pressed the administration to stop the proposed ban. Two people said Microsoft met in September with officials from the White House Office of Science and Technology Policy and the National Security Council to raise supply-chain concerns. Microsoft declined to comment.

Optical transceivers carry data over fiber-optic cables and connect equipment including servers, routers and switches. Some data centers require millions of the components. Industry advocates warn that limiting Chinese models could leave AI chips already purchased by cloud companies without the equipment needed to connect them, slowing data-center deployment. Those are warnings about potential effects, not reported outcomes.

John Miller, general counsel of the Information Technology Industry...