WASHINGTON, D.C. —Congressman Troy E. Nehls (R-TX-22) penned an op-ed in the Washington Reporter, discussing the importance of protecting our nation’s artificial intelligence (AI) infrastructure to secure American AI superiority for generations to come.
In the op-ed, Congressman Nehls highlights his work with Congressman Ronny Jackson (R-TX-13) to secure directive report language in the Fiscal Year 2026 House National Defense Authorization Act. This directive report language requires the Department of War to brief the House Armed Services Committee, by March 2026, on the national security threat posed by foreign-made transceivers. He also notes the investment by Applied Optoelectronics, Inc. (AOI)—the largest optical transceiver manufacturer in the country—which will produce more secure transceivers for domestic use and create 500 jobs.
Read the op-ed HERE or below:
"Protecting our AI infrastructure is critical to winning the global AI race. While switches, routers, and other components that make up our data centers have received attention for their potential security vulnerabilities, a smaller, just as powerful component has been overlooked — and it leaves our country vulnerable.
Optical transceivers are small gateway devices that directly interface with core systems in data centers and cloud infrastructures. Virtually all information that passes through a switch and router in an AI data center flows through one or more transceivers, meaning that transceivers have access to all information — sensitive or otherwise — that supports artificial intelligence, cloud services, and advanced analytics.
Transceivers’ access to information makes them an attractive target for foreign adversaries, presenting an immense national security risk. Foreign adversaries, such as China, can insert malicious firmware or hidden surveillance tools into transceivers, potentially corrupting our networks. They can intercept, record, or reroute sensitive information, putting our most important state secrets within the reach of our enemies. In theory, they could even inject false data into our AI models through compromised transceivers, resulting in false answers or hallucinations from those models.
These types of vulnerabilities can manifest in real-world attacks and consequences that put Americans and their livelihoods in danger.
While the Trade Agreements Act of 1979 limits government procurement of products from non-designated companies like China, Chinese businesses may be able to skirt these laws by using U.S. front stores, obscuring the origin of the transceivers from original equipment manufacturers they work with, claiming they only make “passive” networking gear rather than core telecom equipment, and using product naming structures that hide a device’s origin.
These strategies create a significant gap in national security oversight, making it possible for compromised transceivers to infiltrate current and future data centers. They also threaten American AI dominance at a time when the Trump administration is leading the way to winning the global AI race. With AI poised to create economic growth, jobs, and new manufacturing opportunities, we cannot afford to lose.
With the stakes this high, I was proud to work with Rep. Ronny Jackson (R., Texas) to draft and introduce directive report language addressing this issue in the House FY2026 National Defense Authorization Act. The language directs the Department of War to provide a briefing to the House Armed Services Committee on the national security threat posed by foreign-made transceivers no later than March 2026.
The report must include a thorough analysis of the oversight efforts undertaken by the Department to ensure the safety and security of optical transceivers during procurement, the existing U.S.-based companies that could be used to supply domestic transceivers, and any other barriers that could prevent the department from securing domestic transceivers instead of sourcing from abroad.
This commitment to procuring transceivers from U.S.-based companies aligns with President Donald Trump’s efforts to bring manufacturing back to American shores. His goal to bring jobs back to the U.S. is echoed in the directive report language, which urges the department to establish trusted vendor guidelines to ensure transceiver components originate from secure U.S.-based or allied sources.
While most optical transceivers are currently manufactured in Asia, I know firsthand that American industry can step up to fill the market gap. My district in Texas is home to the largest optical transceiver manufacturer in the country, Applied Optoelectronics, Inc. (AOI). This year, AOI announced plans to expand its Sugar Land footprint by expanding its current manufacturing line and by building a nearly 300,000 square-foot new facility.
This massive investment won’t just provide more secure transceivers for domestic use: it’s also poised to create 500 jobs. Safeguarding our infrastructure and creating American jobs go hand in hand.
So while the immense national security risk of compromised transceivers looms large over our efforts to win the global AI race, it also presents a pivotal moment for us to protect our infrastructure, decrease our reliance on foreign technology, and bring manufacturing back to U.S. soil.
The directive report language in the FY26 House National Defense Authorization Act must be the first step, not the last. By securing our AI infrastructure, we can secure American AI superiority for generations to come."
