Morgan Stanley: Reduced regulatory risk has a positive impact on Chinese optical module companies

Morgan Stanley released a research report stating that, according to reports, Microsoft Corporation (MSFT.US) is urging the Trump administration and the U.S. Federal Communications Commission (FCC) to halt a plan to ban U.S. imports of China-made optical transceivers used in AI data centers. It was previously reported that the Trump administration and the FCC were considering an import ban on new Chinese optical transceivers. Driven by this news, shares of Chinese optical transceiver companies such as Zhongji Innolight (300308.SZ), Suzhou TFC Optical Communication (300394.SZ), and Accelink Technologies (002281.SZ) saw significant revaluation. The bank believes that although it remains unknown whether the regulatory overhang will be fully eliminated, the latest development is positive for Chinese optical transceiver companies. The bank noted that it would be difficult in the short term to find or establish alternative capacity to replace Chinese optical transceiver supply, and U.S. suppliers may also need to set up factories outside the United States. Any supply chain disruption could also lead to delays in data center construction, which would be a negative factor for the entire AI supply chain, not just optical transceiver manufacturers.