TP-Link to spend $1 billion on US router production

A major Chinese networking firm is offering to invest nearly $1 billion in United States manufacturing to bypass a federal ban on foreign routers. TP-Link, a leading producer of consumer Wi-Fi hardware, sent a letter to the Federal Communications Commission stating it will begin assembling its new Wi-Fi 8 devices in the US by next year. The company seeks an exemption from a ban that took effect in spring 2026, which blocks most foreign-made routers from entering the country unless makers prove they are not a national security threat and commit to domestic production.

The FCC requires companies to submit a detailed, time-bound plan to establish or expand US manufacturing to receive a waiver. TP-Link claims its plan will create hundreds of high-paying jobs in research, development, and construction over the next four years. This specific commitment distinguishes TP-Link from competitors Netgear and Asus, which received blanket approvals for their new gear earlier in the year without publicly announcing similar US manufacturing plans.

Netgear and Asus, both of which manufacture their routers in Asia, have not confirmed to reporters whether they submitted US manufacturing plans as required by FCC paperwork. Asus recently obtained an exemption that allows it to bring its first early Wi-Fi 8 routers to the US market. TP-Link, however, remains in a precarious position because it has not yet secured a blanket waiver, despite its willingness to invest in local assembly. The company launched its first Wi-Fi 8 routers recently but cannot currently bring them to US consumers.

The router ban is part of a wider government effort to restrict foreign consumer gadgets. In December 2025, the FCC banned all future foreign drones unless companies obtained a waiver. Subsequent orders extended these restrictions to robots, power inverters, and robovacs. The government argues these devices pose an unacceptable threat to national security, although it has not released public evidence to support these claims. The agency has also targeted Chinese test labs, decertifying two firms recently for providing incorrect equipment test results.

The FCC plans to vote on October 29 regarding a rule that would ban all Chinese labs from testing US gadgets by 2029. The proposal aims to restrict authorization to labs that have a reciprocal economic relationship with the US. Meanwhile, the ban on advanced robotic devices, confirmed by FCC media relations director Katie Gorscak, includes robot vacuum cleaners. This effectively prevents new robot vacuums from major foreign companies from entering the US market unless they are built domestically, a standard no major manufacturer currently meets.

Enforcement of these bans has created gaps in the market that US companies are not ready to fill. Consumer gadgets are largely made overseas, including nearly all routers and drones. Some banned devices continue to circulate through online marketplaces like Amazon and eBay, often sold as existing inventory that entered the country before the bans took effect. The FCC is currently taking comments on a plan to require online marketplaces to validate the FCC status of each device before listing it for sale.

DJI, a prominent Chinese drone and camera maker, faces ongoing scrutiny. The agency has sealed letters from the Pentagon regarding a national security threat, which were forwarded to 16 congresspeople. The FCC recently blocked applications from Jovistar, a company identified as a DJI front. Another entity, Odyssey Robot, had its authorizations revoked after investigators found empty offices and inconsistencies in its filings. These actions reflect a sustained effort to control the flow of foreign hardware into the US consumer market.