The US government is taking a firm stance on the security of its network infrastructure. New regulations will require **FCC** approval for any router manufactured outside the US before it can be imported, marketed, or sold within the country. According to an Executive Branch determination, foreign-produced routers introduce "a supply chain vulnerability that could disrupt the U.S. economy, critical infrastructure, and national defense" and pose "a severe cybersecurity risk that could be leveraged to immediately and severely disrupt U.S. critical infrastructure and directly harm U.S. persons." ### Approval Process and Exemptions Companies manufacturing routers abroad must apply for conditional approval. This process mandates disclosing the firm's foreign investors or influence, alongside a detailed plan to relocate router manufacturing to the US. However, the **Department of Defense** or the **Department of Homeland Security** may grant exemptions for certain routers deemed acceptable. As of now, neither agency has released a list of specific equipment exceptions. ### Market Impact and Future Outlook Popular router brands in the US, such as **Netgear**, currently manufacture their products overseas. An exception is **Starlink** WiFi router, part of **Elon Musk's** company, **SpaceX**. This policy shift will likely encourage US companies to establish domestic router manufacturing, although these products are expected to be more expensive than those produced in China or Taiwan. The underlying message is clear: enhanced security comes at a cost, and policy dictates who bears that cost. It remains to be seen if US companies will consider this policy stable enough to invest in long-term manufacturing plans. Tags: China, cyberattack, hardware, national security policy