US FCC Prohibits Sale of New Foreign-Made Consumer Routers Amid National Security Concerns
The ban targets devices manufactured outside the United States to prevent cyberattacks and espionage, leaving existing hardware unaffected while pushing manufacturers toward onshoring or conditional exemptions
The Federal Communications Commission has prohibited the sale of new consumer-grade Wi-Fi routers and mobile hot spots manufactured outside the United States, citing significant national security risks. The regulator determined that foreign-made devices pose an unacceptable threat to US national security after malicious actors exploited security gaps to attack American households, disrupt networks, and facilitate espionage. Consequently, these foreign-made routers have been added to the Covered List of equipment deemed to pose such risks.
The regulation applies strictly to new imports; routers already in US homes or currently on sale remain unaffected and can continue to be used, sold, and updated. However, any new router manufactured overseas now requires FCC approval before it can be imported, marketed, or sold in the United States. This mandate extends to routers from US-headquartered companies if they are manufactured outside the US, creating a complex compliance landscape for the industry.
Manufacturers seeking to sell new devices must apply for Conditional Approval from the Department of Defense and the Department of Homeland Security. Applications must provide detailed evidence regarding ownership, board membership, the country of origin for components, intellectual property ownership, design, assembly, and firmware. Furthermore, applicants must submit a plan for US manufacturing or onshoring, signalling a clear push for domestic production. As of now, no routers or manufacturers have been granted this Conditional Approval.
Major market players face potential supply disruptions and price increases as they navigate these requirements. TP-Link, which holds approximately 35 per cent of the US consumer router market, manufactures the bulk of its products overseas in Vietnam, Thailand, Indonesia, and Taiwan. Similarly, Netgear and Asus, which collectively account for another 25 per cent of the market, rely heavily on foreign assembly in locations including China, Vietnam, and Taiwan. These companies must either secure exemptions or shift manufacturing operations to the United States.
The ban does not impact specific products like Starlink routers, which are primarily manufactured in Texas, although they still rely on East Asian components. Industry analysts warn that the ruling has the potential to significantly disrupt the US consumer router market in the near term. Delays in processing conditional waivers could constrain supply and create upward pressure on pricing for consumers, particularly as companies rush to satisfy government agencies that their wares do not present a security risk.
While the ban focuses on consumer-grade devices, it leaves several questions unanswered regarding why existing stock is deemed safe and which manufacturers will ultimately receive approval. Cybersecurity experts note that the security model behind a product matters more than its geography, urging consumers to stick with reputable manufacturers that maintain long-term firmware support and built-in protection layers.
