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TP-Link · Routers3 min read

TP-Link offers to build routers in Mississippi, with strings attached

TP-Link says it would spend nearly $1 billion to build routers in the US, but only if the FCC grants a waiver. Here is what that means if you shop for Wi-Fi gear.

By the Dashline deskSource: The Verge
TP-Link offers to build routers in Mississippi, with strings attached
Photo: The Verge

TP-Link, one of the biggest makers of home Wi-Fi routers, says it is ready to assemble routers in Corinth, Mississippi. The company signed a letter of intent with US contract manufacturer Key Tronic. It could start making routers there as early as next year. But the plan depends on approval from the US government, and the company admits nothing is final.

What happened

TP-Link just launched its first Wi-Fi 8 routers, the next generation of Wi-Fi. It cannot bring them to the US because of President Donald Trump's ban on foreign routers. Rivals Netgear and Asus also make routers in Asia, yet both received blanket waivers for all their new gear. TP-Link has not.

In a letter to the Federal Communications Commission (FCC), TP-Link said it would invest nearly $1 billion over four years. It promised hundreds of research, manufacturing and construction jobs for American workers.

The catch

The offer hinges on the FCC granting what is formally called conditional approval, or a waiver of the ban. TP-Link would not say when it applied. It sounds like the FCC has not given any hint of an answer. TP-Link says it supplied details about its structure, ownership and supply chain, and the FCC has asked no follow-up questions.

Why would a company building in the US still need a waiver? Components. TP-Link buys chips from US firms like Qualcomm and Broadcom, but those firms do not make the chips in the US. A TP-Link executive said it is unclear whether they count as US product.

Why the FCC may hesitate

Five states have sued over TP-Link's alleged ties to China. More have asked the FCC to deny a waiver. They cite its market share, claims that it is a Chinese company posing as a US one, and security flaws in its routers. TP-Link calls this misinformation. It puts its US market share at about 9 to 10 percent, and says it does not sell customer data or allow backdoors.

What is not known yet

  • Whether the FCC will approve the waiver, and when.
  • Whether TP-Link would build all US-bound routers here, which it will not yet commit to.
  • How much real manufacturing would happen, beyond final assembly.
  • Job numbers and technical details, which the company is not sharing.

A TP-Link executive said the Mississippi site may do more than assembly, such as plastic molding and testing, as in its Vietnam plants. The company would not confirm that. The administration wants Made-in-USA products with at least 65 percent US-made components. TP-Link says it would be happy to comply if it can keep quality and prices, but calls that challenging in the short term.

What to do

If you want a TP-Link router, the new Wi-Fi 8 models may not reach US stores soon. Check what is actually on sale before you plan an upgrade.

The takeaway

TP-Link's US factory plan depends on an FCC waiver, so do not count on its new Wi-Fi 8 routers arriving in US stores soon.

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