Houston Daily

Congressman Troy E. Nehls (R-TX-22) has published an op-ed in the Washington Reporter, emphasizing the need to protect the United States’ artificial intelligence (AI) infrastructure by securing optical transceivers and prioritizing American-made components.

In his article, Nehls describes his collaboration with Congressman Ronny Jackson (R-TX-13) to include directive report language in the Fiscal Year 2026 House National Defense Authorization Act. This language requires the Department of War to brief the House Armed Services Committee by March 2026 on national security threats related to foreign-made transceivers.

Nehls points out that Applied Optoelectronics, Inc. (AOI), located in his Texas district, is expanding its operations and will create 500 jobs while producing secure transceivers for domestic use.

He writes: "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 fill market gap My district Texas home largest optical manufacturer country Applied Optoelectronics Inc AOI This year AOI announced plans expand Sugar Land footprint expanding current manufacturing line building nearly 300000 square foot new facility

This massive investment won’t just provide more secure transceivers for domestic use: it’s also poised create 500 jobs Safeguarding infrastructure creating American jobs go hand hand

So while immense national security risk compromised looms large over efforts win global race also presents pivotal moment us protect decrease reliance foreign technology bring manufacturing back soil

The directive report language FY26 House National Defense Authorization Act must first step not last By securing infrastructure we can superiority generations come."

Nehls has maintained electoral support over recent years; he won elections against Sri Preston Kulkarni in 2020 with about 51% of votes cast; Jamie Jordan in 2022 with over 62%; and Marquette Greene-Scott in 2024 with more than 62%.