[Edaily Reporter PARK MIN ] Shares of optical communication-related companies are trading higher in early trading on the 5th following reports that the U.S. government is drafting legislation to ban the import of certain Chinese-made components used in data centers.

According to MP Doctor, as of 9:04 a.m. today, OE Solutions Co., Ltd.(138080)is trading at the daily price limit of 25,150 won, up 29.84%. OE Solutions Co., Ltd. is continuing its upward trend for the second consecutive day, following a 10.56% rise the previous day.

At the same time, other stocks considered to be related to optical communications—including RF Materials(327260) (up 20.70%), RFHIC CORPORATION(218410) (up 15.28%), LIGHTRON FIBER-OPTIC DEVICES(069540) (up 14.83%), TAIHAN Fiberoptics Co.,LTD(010170) (up 14.44%), and SEOUL VIOSYS CO., LTD.(092190) (up 12.31%)—are also showing strong gains.

This is believed to be a reaction to a report by Reuters the previous day that the U.S. administration is drafting legislation to ban the import of certain Chinese-made components used in data centers to strengthen national security.

The news agency reported that the U.S. Federal Communications Commission (FCC) is drafting a bill to ban the import of new Chinese-made optical transceivers in order to protect the core infrastructure underpinning the AI boom.

Optical communications is a technology that transmits data using light. It is characterized by its ability to deliver large volumes of data at high speeds over long distances via optical fibers and cables. Compared to traditional copper-wire-based communications, it offers faster transmission speeds and lower power loss, making it widely used across network infrastructure, including data centers, 5G networks, AI infrastructure, and submarine cables.

Meanwhile, Korea Investment & Securities stated on the same day that a buying opportunity has returned for the optical communications sector and recommended “increasing exposure.” Stock prices in the global optical value chain have fallen by an average of 40% from their May highs but are currently attempting a rebound. Analyst Kim assessed, “Even considering the high expectations, this correction is sufficient,” adding, “The valuation has become more attractive.”