TP-Link Plans Potential US Wi-Fi 8 Router Assembly Amid Regulatory Hurdles

Image: Will TP-Link really make routers in the US? Here’s what it told us · Source

TP-Link aims to begin assembling Wi-Fi 8 routers in Mississippi but awaits an FCC waiver linked to a US import ban before proceeding, with plans involving substantial US-based production steps.

TP-Link, a leading global consumer Wi-Fi router manufacturer, recently unveiled its first Wi-Fi 8 routers but faces significant challenges introducing them to the US market due to an import ban on foreign routers enforced during the Trump administration. While competitors such as Netgear and Asus, which also rely on Asian manufacturing, obtained waivers to circumvent the ban, TP-Link has yet to secure such clearance. The company, however, expressed readiness to invest nearly $1 billion to manufacture routers domestically, promising the creation of numerous American jobs in research, manufacturing, and construction over the next four years.

This week, TP-Link announced a letter of intent with contract manufacturer Key Tronic to initiate domestic assembly of Wi-Fi 8 routers in Corinth, Mississippi, potentially starting production as early as next year. According to TP-Link’s corporate affairs officer Steve Kovsky, the assembly process could mirror the comprehensive manufacturing activities currently conducted in Vietnam, including surface-mount technology, multilayer testing quality control, and plastic injection molding, rather than mere final assembly.

However, the planned US manufacturing hinges on the Federal Communications Commission (FCC) granting a conditional approval waiver from the import ban. TP-Link has supplied extensive company and supply chain information but remains uncertain about the FCC's decision timeline. Kovsky highlighted that even though they source chipsets from US-based companies like Qualcomm and Broadcom, these components are manufactured abroad, complicating their eligibility under the waiver criteria.

The FCC’s hesitation partly stems from allegations regarding TP-Link's ties to China, with several states filing lawsuits and raising concerns about security vulnerabilities and market dominance. TP-Link counters these claims, stating their US market share is approximately 9 to 10 percent and emphasizing their commitment to transparency, data privacy, and stringent security without backdoors. Nonetheless, TP-Link has not committed to exclusively US-based manufacturing for all US-bound routers, citing challenges in meeting the administration’s goal of having 65 percent US-made components, which are currently scarce domestically. They remain optimistic that increased domestic manufacturing incentives could improve component availability.

Ultimately, TP-Link’s investment decision will depend on aligning business and regulatory factors, including FCC waiver approval. The company aims to comply with US quality and affordability standards if proceeding. Despite uncertainties, TP-Link’s efforts highlight tensions in US technology supply chains and regulatory landscape, underscoring the complexity of shifting consumer electronics production to domestic soil.