The US Federal Communications Commission has used a new rule for the first time to keep devices off the American market because of the chips inside them.
What happened
On 22 October 2026 the FCC said its Office of Engineering and Technology had blocked two devices, a wireless video transmitter and a dashboard camera, because they contain chips made by HiSilicon, a Huawei subsidiary. HiSilicon is on the FCC's Covered List of companies whose equipment is considered a threat to national security. The FCC noted that HiSilicon markets products as "designed for the surveillance market" with built-in face detection.
The action relies on new rules that took effect on 13 October. Until then, the FCC's rules did not stop otherwise lawful devices from including component parts made by Covered List entities. The new rules close that gap: a product can now be refused authorisation if covered components are inside it, even when the finished device comes from a company not on the list.
Chairman Brendan Carr said: "Video devices containing surveillance chips produced by Covered List entities pose an obvious and unacceptable risk to the nation and our people."
Why manufacturers should pay attention
The first cases involve niche video products, but the principle reaches across the supply chain. Any manufacturer seeking FCC equipment authorisation for the US market will need to know where its chips and modules come from. Test laboratories and certification bodies will also face pressure to check component origins.
What to watch
- Further blocking decisions, and whether they extend beyond video surveillance chips.
- How the FCC handles devices already authorised before 13 October.
- Supply-chain changes by Asian device makers that use HiSilicon or other covered components.
Why it matters financially
- No figures were reported for the blocked products or for the wider market affected.
- The financial risk is in market access: a device that fails FCC authorisation cannot be sold in the US. Manufacturers that use covered components face redesign and re-certification costs, and may lose sales.