FCC Exempts Netgear from Foreign-Made Router Ban for Some Reason

The Federal Communications Commission (FCC) has granted Netgear an exemption from its ban on foreign-made routers, allowing the company to continue selling overseas-manufactured routers in the U.S. until October 2027. This decision stands in contrast to the FCC’s recent rule that prohibits the sale of new routers not made domestically, a measure aimed at securing the router supply chain against cyber vulnerabilities. Netgear, which holds the third-largest share of the router market, can now sell a broad range of products—including its Nighthawk and Orbi series routers, cable gateways, and modems—without complying with the new domestic manufacturing requirements. The FCC’s ban was introduced following concerns about cybersecurity risks linked to foreign-made routers, notably after the Salt Typhoon cyberattack in 2024. The agency’s policy requires new routers to be manufactured in the U.S. or to receive “conditional approval” based on a manufacturer’s plan to relocate production stateside. However, there is no public evidence that Netgear has submitted such a plan, raising questions about the rationale behind the exemption. The FCC has similarly exempted one other company, Adtran Inc., but details on the criteria for these exceptions remain unclear. Netgear’s exemption effectively creates a significant loophole, enabling the company to maintain its overseas manufacturing operations in countries like Indonesia, Vietnam, and Thailand—nations considered U.S. allies—while continuing to supply the U.S. market. The company’s website still confirms that its consumer routers are produced abroad, and its exemption announcement does not mention any plans to shift manufacturing domestically. This situation has drawn criticism from industry observers, including the Technology Policy Institute, which argues that the ban may inadvertently increase security vulnerabilities by limiting updates and complicating router supply chains. The FCC’s approach to router security and manufacturing has been marked by inconsistencies, including a recent policy that restricts security updates for existing routers, potentially undermining the ban’s stated cybersecurity goals. Both the FCC and Netgear have been contacted for clarification on the exemption and any manufacturing relocation plans, but no official explanations have been provided to date.