China's A-share optical chip sector suffered a heavy blow on the first trading day after the National Day holiday, with the optical chip index plummeting over 5% in a single day. Accelink Technology, Everbright Photonics, and Dongshan Precision successively hit the 20% daily limit down, while Sifang Photonics fell over 16% and Yongding股份 dropped over 7%.

According to Wallstreetcn, citing Securities Times, the sell-off was mainly driven by two pieces of negative news: first, market concerns that the U.S. FCC might introduce new regulations targeting Chinese optical modules; second, market rumors of price pressure on 1.6T optical chips.

Among these, the U.S. FCC's new regulation, FCC 26-50, set to be implemented on October 13, which includes core electronic components produced by certain restricted companies under equipment authorization restrictions, is considered one of the triggers for this round of sell-off. Additionally, a Morgan Stanley report on October 1 mentioned that the FCC might restrict Chinese-made optical modules in phases starting from the 3.2T generation, with an exemption if U.S. companies account for 65% of the bill of materials value.

Industry insiders believe that the implementation of such restrictions is uncertain and primarily targets 3.2T products (expected to see significant volume only by 2028), thus having limited short-term impact on current mainstream 800G and 1.6T products. Meanwhile, rumors of declining prices for 1.6T optical chips also exacerbated market panic, although Nomura Securities expects demand for 1.6T chips to still exceed restricted capacity, indicating structural support.