Goldman Sachs: U.S. Plans to Ban Chinese Optical Modules, Leading Manufacturers Have Deeper Moats Than Market Expectations

Deep Tide TechFlow reports, according to Tide Research, Reuters reported on August 4 that the Trump administration and FCC are drafting a proposal to ban U.S. imports of Chinese data center components, with optical modules specifically mentioned. Goldman Sachs responded to three core issues in its August 10 research report: rapid technological iteration, strong AI demand, and high R&D requirements for diverse SKU offerings make customers more reliant on existing leading manufacturers in the current environment, and unlikely to easily switch to new suppliers. Among the world's top ten optical module suppliers, seven are headquartered in China, with market share expected to further expand in 2025 compared to 2024. Goldman Sachs pointed out that leading manufacturers excel in capacity commitments, automated production, and manufacturing efficiency. The upgrade of products to 1.6T and above further raises manufacturing thresholds, making it difficult for small and medium-sized manufacturers to catch up in the short term. Overseas capacity expansion is already underway, with Innolight's first phase in Thailand at full capacity and the second phase set for expansion in 2026, establishing a long-term trend of diversification. Goldman Sachs issued a "Buy" rating for Innolight and Robotic Technology, as well as for FOCI, LandMark, and VPEC (all Taiwan-listed stocks), citing the synergy of technology, capacity, and customer collaboration as forming an unreplicable competitive barrier.