Microsoft has requested that President Trump cancel a planned ban on advanced Chinese optical transceivers. The company argues that these components are essential for its data center infrastructure and that restrictions could disrupt supply chains.
The proposed ban targets new transceiver models capable of handling data speeds up to 3.2 terabits per second. While these parts are not yet in widespread use, production is expected to increase by 2028, with mainstream adoption projected for 2029.
Microsoft currently has 35 data centers under construction in the United States, with an additional 134 sites planned. The company expressed concerns that a ban on these networking components could delay construction and impact future capacity.
These concerns were discussed during meetings between Microsoft and the White House Office of Science and Technology Policy in September 2026. Additionally, counsel at ITI warned that such restrictions could potentially bring data center rollouts to a standstill.
