- TP-Link has signed a letter of intent with a manufacturing contractor in order to make its routers in the U.S.
- A group of state attorneys general has sued TP-Link, claiming it has close ties to the Chinese government
- And the FCC has banned all routers made in foreign countries unless the router maker receives a conditional waiver, which the FCC has not granted to TP-Link
The router maker TP-Link Systems today said it has signed a letter of intent with the electronics manufacturer Key Tronic to bring its router assembly to the U.S. This follows on a letter TP-Link sent to the Federal Communications Commission (FCC) last week, saying it was contemplating a $1 billion investment in America to manufacture its routers.
TP-Link is in crisis mode ever since a group of state attorneys general sued the company, claiming it has close ties to the Chinese government. Florida’s Attorney General James Uthmeier alleges that Chinese state-sponsored hackers have exploited TP-Link routers sitting in American living rooms.
Today, Irvine, California-based TP-Link said Key Tronic would assemble TP-Link products at its factory in Corinth, Mississippi. Pending U.S. regulatory approval, TP-Link expects domestic assembly of its Wi-Fi 8 home networking product line to begin as early as next year.
“This letter of intent with Key Tronic demonstrates our firm commitment to expanding domestic advanced manufacturing, and establishing America as our base for delivering secure, reliable connectivity solutions to households and businesses around the world,” said Jeffrey Chao, CEO of TP-Link Systems, in a statement. “By choosing to assemble cutting-edge products here at home, we are thrilled to support U.S. high-tech job growth and empower a new generation of American innovation and innovators.”
For its part, Key Tronic is a contract manufacturer offering services from its facilities in the U.S., Mexico and Vietnam.
TP-Link needs a router waiver
On March 23, the FCC effectively banned all consumer-grade routers produced in foreign countries from sale in the U.S. unless the vendor applies for and receives a “Conditional Approval” from the Department of War (DoW) or the Department of Homeland Security (DHS). The application to the DoW or DHS goes through the FCC.
This caused virtually every router maker to apply for a conditional waiver, and so far, about 22 of these companies have been granted a waiver.
TP-Link has also filed for conditional waivers for two Wi-Fi 8 routers that it plans to introduce globally later this year. But the FCC has not granted those waivers.
Last week, TP-Link sent a letter to the FCC, saying it was contemplating “a nearly $1 billion investment in America that would result in equipping existing U.S. factories, and ultimately building new, highly automated manufacturing facilities, to start assembling next-generation Wi-Fi 8 routers in the United States as soon as next year.” The company said the devices will incorporate software and firmware developed, written and stored in the United States by TP-Link’s U.S. engineering organization.
TP-Link said it is poised to unleash this investment upon a grant of its conditional waivers.
Fierce Network reached out to TP-Link, asking if the $1 billion investment and the work with Key Tronic will all be null and void if the FCC does not approve the waivers.
TP-Link responded saying, "The Letter of Intent (LOI) with Key Tronic is an independent agreement representing TP-Link System Inc.’s long-term commitment to expanding U.S. manufacturing, job creation, and supply chain resilience. Pending regulatory approval, TP-Link expects domestic assembly of its Wi-Fi 8 product line at Key Tronic's facility in Corinth, Mississippi, to begin as early as next year."
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