Daehan Optical Communication is experiencing a surge in stock prices following news of U.S. regulations on imports of Chinese optical transceivers.
As of 1:48 PM on the Korea Exchange, Daehan Optical Communication's shares rose by 2,090 won (18.24%) to 13,550 won. Earlier in the day, the stock peaked at 13,430 won, marking a 17.19% increase.
This upward trend is attributed to reports that the Federal Communications Commission (FCC) is moving forward with plans to restrict imports of Chinese optical transceivers, which are considered essential components for building artificial intelligence (AI) data centers.
On August 4, Reuters reported, citing knowledgeable sources, that the FCC is pursuing a ban on imports of new Chinese optical transceivers.
Market analysts suggest that as the technological rivalry between the U.S. and China intensifies, domestic optical communication companies may benefit from this situation. Kang Jin-hyuk, a researcher at Shinhan Investment Corp., stated, "In the context of ongoing U.S.-China competition, the FCC's import regulations on optical transceivers have led to a rise in certain optical communication stocks."
At the same time, other optical communication-related stocks, including RFHIC, Wooree Net, and Inno Instrument, are also showing positive trends.
* This article has been translated by AI.
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