Netgear Exempted by FCC from Foreign Router Ban

Netgear, recognized as one of the leading players in the router market with approximately the third-largest share, has recently received significant news: it is granted an exemption from the FCC’s ban on foreign-manufactured routers until October 2027. The reasons behind this unexpected reprieve remain uncertain and have sparked much speculation.

Recently, the FCC announced a ban on the sale of all new routers that are not produced within the United States. Existing routers that already possess FCC clearance can continue to be sold, but any new approvals are now restricted to routers made in America. This decision was driven by concerns over vulnerabilities in routers that have facilitated cyberattacks, such as the notorious Salt Typhoon attack that occurred in 2024. The FCC aims to eliminate potential security backdoors by ensuring that the entire router supply chain is securely managed and controlled.

Under this new regulation, manufacturers are required to produce all new routers domestically or apply for “conditional approval.” Achieving this approval entails navigating a series of new requirements demonstrating a commitment to relocating manufacturing to the U.S. However, as reported by The Verge, there is no evidence that Netgear has undertaken this initiative, and Gizmodo has been unable to find any confirmation of such efforts either.

Notably, the FCC has granted a similar exemption to one other company, Adtran Inc., but Netgear’s exemption is significantly broader. It encompasses a wide range of products, including:

“Netgear, Inc.’s Nighthawk consumer mesh, mobile and standalone routers (R, RAX, RAXE, RS, MK, MR, M and MH series), Orbi consumer mesh, mobile and standalone routers (RBK, RBE, RBR, RBRE, LBR, LBK and CBK series), cable gateways (CAX series) and cable modems (CM series).”

This exemption could potentially provide Netgear with a substantial loophole, allowing it to maintain overseas manufacturing of routers, which is the current practice for nearly all consumer routers. Consequently, Netgear can introduce new products into the U.S. market under the exemption’s categories, thereby avoiding restrictions.

Despite this significant exemption, Netgear’s announcement lacks any mention of plans to bring manufacturing back to the U.S. It merely highlights that Netgear is “a U.S. founded and headquartered company.” Furthermore, the information available on the Netgear website states that “We currently manufacture our consumer router products in Indonesia, Vietnam, and Thailand, which are recognized as allies by the U.S. Government.”

This exemption from the FCC is not the first puzzling action relating to the router ban. Just last month, the FCC imposed an expiration date of March 1, 2027, for security updates on new routers, while simultaneously wording it in such a way that it effectively denies security updates for existing routers. A think tank known as the Technology Policy Institute commented that “The ban creates the very vulnerability it claims to address.”

Gizmodo has reached out to both the FCC and Netgear for further clarification regarding the rationale behind Netgear’s exemption and whether there are any plans for reshoring production. We will provide updates on this article as soon as we receive a response.