The FCC Blocks the First Devices with Foreign Surveillance Chips

Last week, on October 22, the U.S. Federal Communications Commission (FCC) announced the first practical application of a newly adopted rule prohibiting the marketing of any electronic device containing logic-bearing components produced by companies on its "Covered List" — a set of Chinese manufacturers and others that U.S. national security agencies deem unacceptable risks. The two devices blocked were a dashboard camera and a wireless video transmitter, both containing chips from HiSilicon, Huawei's subsidiary.

The move may seem technical to a casual observer, but it marks a paradigm shift in how the United States protects its technology supply chain. From 2022 until October 12, 2026, FCC rules prohibited devices entirely produced by Covered List entities — such as Huawei, ZTE, or Hikvision — from receiving authorization for import or sale in the U.S. Devices manufactured by other companies and containing components from those companies, however, could be approved. The result was predictable: a manufacturer could assemble a dash cam in the United States, buy a display controller chip from Huawei, obtain FCC certification, and sell the device freely.

The October 13 rule closed that loophole. Now, any device containing a logic-bearing component (basically any "smart" chip) produced by a Covered List entity is treated as if the entity itself had manufactured the entire device. If Huawei can't sell a router, a smartphone using a Huawei chip also can't — and the same applies to a HiSilicon video chip.

What the FCC did exactly

The FCC's announcement, published on October 22, describes the case rather briefly. The Office of Engineering and Technology (OET) determined that two specific models — a dashboard camera and a wireless video transmitter — contained chips produced by HiSilicon. HiSilicon itself markets the chip in question as "designed for the surveillance market," with "built-in human face detection algorithms." The FCC blocked authorization of these devices before they could be marketed.

Notably, the FCC did not disclose commercial names, models, or chip part numbers. According to DroneXL, a drone-focused site that tracks FCC rules in detail, the authorization applications did not explicitly reveal HiSilicon components — suggesting the chips were identified through internal photographs of circuit boards that every certification filing must include, or some other form of documentary inspection.

The FCC also published a Further Notice of Proposed Rulemaking (FNPRM) in the same announcement, asking whether every equipment authorization application should include a hardware and software bill of materials, explicitly listing all components. This would transform the manufacturer's self-declaration from a generic statement that the device contains no covered equipment into a traceable inventory.

How the rule works in practice

The final rule was published in the Federal Register on September 11, 2026, and took effect on October 13. It applies only prospectively: devices already authorized before that date retain their authorization, and applications already pending on that date are exempt unless the applicant changes a logic-bearing component.

The logic behind the rule is straightforward. A compromised component can enable interception, sabotage, or unauthorized access — regardless of who assembles or brands the final device. The Commission reached this conclusion in its Third Report and Order (FCC 26-50), adopted on July 22, 2026, and summarized it thus: "from a technical perspective, such components pose essentially the same unacceptable risks to national security or the safety and security of U.S. persons as covered equipment itself."

The prohibition applies only to logic-bearing components produced by entities subject to producer/provider-based Covered List determinations. It does not apply to production location-based entries — which means, for example, that drones or routers produced in a foreign country have different treatment. This distinction is intentional: the FCC bifurcated the Covered List into producer/provider-based entries and production location-based entries, and only the former are subject to the logic-bearing component prohibition.

The broader context

This action is part of a much broader effort the FCC has been building since 2021. When Congress passed the Secure Equipment Act in 2021, it gave the FCC authority to prohibit authorization of "covered" equipment for import or sale in the U.S. Since then, the Commission has been gradually adding new products, services, and entities to the Covered List: telecommunications equipment, video surveillance devices, foreign drones, foreign-produced routers, and now, logic-bearing components.

In July 2026, the FCC had already banned new approvals for foreign drones and foreign routers. In August 2026, it proposed a nearly $200,000 fine against two Covered List entities. In June, it extended the ban to older models of public safety and surveillance equipment. Each step was incremental, testing the legal and technical limits of the agency.

Chairman Brendan Carr called the blocked devices "an obvious and unacceptable risk to the nation and our people," and praised the OET's work in "preventing this potential spyware from obtaining the approvals necessary for marketing and sale in the U.S." The statement is consistent with the FCC chair's hardline stance on supply chain security — Carr has been the principal advocate for these restrictions since he took office.

What the FCC did not do in this action was explicitly name the manufacturer of the two devices. The agency did not disclose the FCC IDs or grantee codes involved. This raises questions about the process's transparency: if manufacturers can hide covered components from their applications, and if the FCC relies on visual inspection of circuit boards to discover them, then the rule's effectiveness depends on how thorough those inspections are.

What to expect in the coming months

The FCC has already signaled that it will continue to aggressively enforce its component rules. The announcement itself says: "The FCC will continue to aggressively enforce its Covered List component rules." And the question about the bill of materials — whether every equipment application should contain an explicit list of components — is open for public comment, suggesting the agency is considering even stricter evolution.

Additionally, the FCC is studying whether to extend the logic-bearing component prohibition to also cover non-logic components produced by entities from adversary countries. Currently, the rule covers only chips and components with processing capability — simple memories, resistors, capacitors, and other passive components are not included.

The case of dash cams with HiSilicon chips shows that the war for telecommunications supply chain security has entered a new phase: it is no longer just about banning whole products from Chinese manufacturers, but about tracing individual components within devices manufactured by any company, in any country.

The question is: how long will it take before the FCC requires a complete hardware bill of materials for every certification application?

Sources: The Verge, FCC, DroneXL

✓ Independent sources cross-checked and verified before publishing