Is TP-Link planning to manufacture routers in the US? Here’s what we found out.

TP-Link, a major player in the consumer Wi-Fi router market, finds itself in a tough spot in the US. The company has just rolled out its first Wi-Fi 8 routers but is unable to sell them domestically due to a router ban imposed by the previous administration. While rivals like Netgear and Asus have managed to secure waivers for their products, TP-Link, facing scrutiny over its alleged connections to China, has yet to receive similar treatment.

In a bold move, TP-Link is prepared to invest nearly $1 billion to establish router manufacturing in the United States, promising to create hundreds of high-paying jobs in research, development, and manufacturing over the next four years. This week, the company announced a partnership with a US contract manufacturer to start assembling its Wi-Fi 8 routers in Corinth, Mississippi, with production potentially kicking off as soon as next year.

What’s intriguing is that this venture may involve more than just basic assembly. According to TP-Link’s corporate affairs officer, the process could mirror their operations in Vietnam, where raw components are transformed into fully tested and packaged products. This includes advanced manufacturing techniques and rigorous quality control measures.

However, the path to establishing a manufacturing plant hinges on a waiver from the Federal Communications Commission (FCC). The company is waiting for the FCC to grant conditional approval for the router ban, which is essential for moving forward. While TP-Link has submitted extensive information about its operations, the FCC has not provided any updates on the status of the waiver.

Kovsky expressed the need for transparency and openness in negotiations with the FCC, emphasizing that nothing is set in stone. The reason for needing an import waiver, despite plans for domestic production, lies in the sourcing of components. Although TP-Link procures chipsets from US companies, those chips are not manufactured in the US, raising questions about their classification as US products.

The FCC’s hesitation may stem from ongoing legal challenges in several states regarding TP-Link’s alleged ties to China. Critics argue that the company dominates the consumer router market and poses security risks. Kovsky counters these claims, stating that TP-Link holds only about 9 to 10 percent of the market share and maintains strict policies against sharing customer data or allowing backdoors in its products.

If granted the waiver, TP-Link has not committed to producing all US-bound routers domestically, as this will depend on the FCC’s objectives and the availability of components. The administration aims for products made in the US to have at least 65 percent of their components sourced domestically, a goal that TP-Link is willing to support, though it acknowledges the challenges in sourcing components locally.

Ultimately, the decision to invest further will rest with TP-Link’s CEO, who is committed to the project but faces uncertainties regarding component sourcing and market conditions. While TP-Link has not disclosed specific job numbers or detailed assembly processes, the company remains focused on navigating the regulatory landscape and fulfilling its manufacturing ambitions in the US.