FCC surveillance chips rule blocks first two Huawei HiSilicon devices

Key takeaways

• The US Federal Communications Commission (FCC) has blocked a dashboard camera and a wireless video transmitter from the US market because both contain chips from HiSilicon, the chip-design subsidiary of China's Huawei.
• It is the first enforcement of the FCC's component rule, which took effect on October 13, 2026 and closes the so-called "component part loophole" for third-party brands.
• FCC Chairman Brendan Carr called video devices carrying such chips "an obvious and unacceptable risk to the nation and our people."
• The FCC did not name the manufacturers or model numbers. Devices already authorized before October 13 are not affected by the rule.
• A pending proposal could require hardware and software bills of materials with every equipment application.

The FCC has blocked its first two devices under its new surveillance chips rule: a dashboard camera and a wireless video transmitter, each containing a chip from HiSilicon, which the agency treats as part of Huawei, the FCC and Reuters reported on October 22, 2026.

Chairman Brendan Carr said the agency would keep enforcing the rules aggressively, and praised OET for stopping what he described as potential spyware from getting US marketing approval, Light Reading reported.

What the FCC surveillance chips decision covers

The two products had not yet received FCC equipment authorization, which almost every radio-frequency device needs before it can be imported, marketed or sold in the United States. Without that authorization, neither device can legally be offered to US buyers.

The FCC based its finding on who produced the chip. To show what the chip was built for, it pointed to HiSilicon's own marketing, which describes the part as "designed for the surveillance market" with built-in detection algorithms for human faces, according to the FCC release and Reuters. The release links to a HiSilicon datasheet for the Hi3516CV610, a smart-vision system-on-chip. The agency did not say which exact part was found in each device.

The FCC also did not publish the brand names, model numbers, FCC IDs or applicant names involved, and it did not explain how OET spotted the chips. DroneXL, which covers the drone industry, noted that equipment filings normally include internal photos of the circuit boards. It argued that publishing the identifiers would help other manufacturers learn from the case. Neither Huawei nor HiSilicon had commented publicly in the reports reviewed for this article.

How the July 2026 component rule works

The rule comes from the FCC's Third Report and Order in ET Docket No. 21-232 (FCC 26-50). The Commission adopted it on July 22, 2026 and released it on July 23. It was published in the Federal Register on September 11, and the component provisions took effect on October 13, 2026.

Before the rule, a device made by a company that is not on the Covered List could be authorized even if it ran on a chip from a company that is, such as Huawei or Hikvision. Law firm Cooley described that gap as the "component part loophole." Under the new rule, the FCC will not authorize a device that contains a logic-bearing hardware component produced by a Covered List entity if the finished device would have been barred had that entity made it.

What counts as a "logic-bearing" component

According to the Federal Register notice and an analysis by Squire Patton Boggs, logic-bearing components are parts that generate and use digital timing signals or use radio-frequency energy to process data. In practice that covers processors, system-on-chips, Wi-Fi, cellular and Bluetooth modules, and similar parts. Passive and mechanical parts such as resistors, connectors and housings are excluded. Software and firmware from Covered List companies are not restricted for now.

Whether a part is "produced by" a Covered List entity depends on who has substantial responsibility for, or control over, its design, manufacture or assembly. Buying the chip through a distributor or reseller does not avoid the bar, Tech Times reported. The Covered List also extends to subsidiaries and affiliates of the named companies, which is why HiSilicon chips fall under Huawei's entry.

Who is on the Covered List

The FCC first barred new authorizations for telecom and video surveillance equipment from Huawei, ZTE, Hytera, Hikvision and Dahua in November 2022. In the following years the agency added foreign-made drones, new Chinese-made consumer routers and older legacy models, Tech Times reported. Hikvision is a frequent example in analyses of the component rule. This first case involved only HiSilicon parts.

What it means for device makers

The rule hits hardest in categories where low-cost Chinese chips are common: IP and security cameras, dash cams, video transmitters, routers and connected home gadgets. Brands outside China that build products on HiSilicon or other Covered List silicon now have to redesign them before they can get new US approvals. Tech Times reported that this could mean months of redesign, testing and qualification work. In a separate move, the Pentagon says it has dismantled renamed Confucius Institute groups at 30 US universities.

Applicants must certify that a device contains no covered component, and the FCC and Telecommunications Certification Bodies can check those claims. Applications already pending on October 13 may continue under the old rules. However, Squire Patton Boggs notes that this protection is lost if the application is amended to add, swap or change a logic-bearing component.

According to Tech Times, the FCC estimated that the order would cost industry about $50 million a year to comply with, and would bring more than $100 million a year in national security benefits. Industry groups have warned about higher costs. The Commercial Drone Alliance said substitute parts would come "only at higher costs." Beijing has previously called Covered List restrictions protectionist, Tech Times reported.

The same supply-chain pressure is reshaping the wider chip industry. For background, see our coverage of the recent slump in chip stocks and labor risks at Micron's Taiwan plants.

What it means for consumers who already own such devices

The rule applies only to new authorizations. The Federal Register notice states that the component bar "does not affect previously authorized equipment." The FCC has not ordered owners to stop using any camera, router or other device bought before October 13. Even so, Tech Times noted that resale value and long-term vendor support for affected product lines could become less certain.

Buyers who are worried about the security of connected cameras or routers can still take basic steps: install firmware updates, change default passwords, and keep such devices on a separate network. Our guides on setting up passkeys and handling urgent security patches cover related habits.

What comes next

• Bills of materials: A Further Notice of Proposed Rulemaking asks whether every application should include hardware and software bills of materials, possibly with the country of origin of each logic-bearing part. The Semiconductor Industry Association has opposed itemized disclosure on trade-secret grounds, Tech Times reported. Comments closed on September 28, 2026, and the FCC has not yet decided.
• Broader bans: The FCC is also considering barring any Covered List component, not just logic-bearing ones, extending the rules to software and firmware, and adding import restrictions, according to Squire Patton Boggs.
• Online marketplaces: Most online marketplaces must show a device's FCC ID at the point of sale. Cooley says deadlines fall six or nine months after Federal Register publication, depending on the type of marketplace.
• More cases: The FCC has said it will keep enforcing the rule. As DroneXL pointed out, that includes new US-built drones that contain DJI or Autel logic-bearing parts.

It is not yet known how many other pending applications face similar reviews, or whether the FCC will publish identifiers in future cases.

Sources

• FCC: FCC Blocks Two Devices Containing Foreign Surveillance Chips (Oct. 22, 2026)
• Reuters via Yahoo News: US blocks two devices with Chinese-made surveillance chips
• Light Reading: FCC blocks two devices powered by Huawei silicon subsidiary
• Federal Register: FCC Third Report and Order, FCC 26-50 (Sept. 11, 2026)
• Squire Patton Boggs: FCC "logic-bearing hardware component" rules take effect
• Cooley: FCC Expands Restrictions on Covered List Equipment and Supply Chains
• DroneXL: FCC Catches Huawei Surveillance Chips in Its First Parts Ban Case
• Tech Times: FCC Rule Takes Effect: Huawei and ZTE Chips Now Block Devices From U.S. Authorization
• Tech Times: FCC July 2026 open meeting coverage
• ASIS Security Management: FCC announces authorization ban (Nov. 2022)
• FCC: List of Equipment and Services Covered by Section 2 of the Secure Networks Act