Bad Optics: The FCC’s Expanding Reach Into Data Center Supply Chains Webinar

Thursday, November 19, 2026
11:00 AM-12:00 PM ET

Event Description

On November 19th, Morgan Lewis and Capstone’s TMT team will host a webinar to discuss the Federal Communication Commission’s (FCC) Covered List policy amid reports that the agency may restrict imports of foreign-produced optical transceivers. Specifically, they will discuss:

  • Possible FCC restriction on imports of foreign-made optical transceivers
  • Chair Carr’s national security priorities and how far the restrictions could go, based on past moves
  • What other networking and data center supply chain segments could be next

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On November 19th, Capstone Vice President Neil Suri and Associate Shaky Salimjonova and Morgan Lewis Partners Loyaan Egal and David Plotinsky will host a webinar to discuss the Federal Communication Commission’s (FCC) Covered List policy amid reports that the agency may restrict imports of foreign-produced optical transceivers, which are critical networking components in US data centers. Specifically, they will discuss FCC Chair Brendan Carr’s national security priorities, the increased use of the Covered List as an extension of the commission’s long-standing equipment authorization regime, and the potential scope of restrictions on optical transceivers drawing on prior actions targeting drones, routers, and robotics components. Lastly, they will touch on other segments of the broader networking and data center supply chain that could face similar action.

Relevant Companies: Coherent Corp. (COHR), Lumentum Holdings Inc. (LITE), Applied Optoelectronics Inc. (AAOI), AXT Inc. (AXTI), Fabrinet (FN), Sivers Semiconductors AB (STO: SIVE)

Capstone's Take: Capstone believes the FCC will limit imports of foreign-produced optical transceivers by the end of Q1 2027, effectively excluding Chinese suppliers from the US market for next-generation 3.2T transceivers. We expect the restrictions to benefit US and allied manufacturers such as Coherent Corp. (COHR) and Fabrinet (FN), while speeding adoption of alternative architectures, such as co-packaged optics (CPOs).