FCC to vote on banning device sales containing blacklisted Chinese components

The Federal Communications Commission is preparing to vote in July on a rule that would ban the sale of US devices containing components from companies on its “Covered List.” That list reads like a who’s who of Chinese tech firms the US government considers national security threats: Huawei Technologies, ZTE, Dahua, Hikvision, and Hytera.

The US already bans finished equipment from these companies. But their components, like HiSilicon-designed chips made by Huawei’s semiconductor arm, can still end up inside devices that otherwise pass regulatory muster. The FCC wants to close that gap.

Current FCC rules prevent new equipment authorizations for devices manufactured by Covered List companies. But those same rules say nothing about unauthorized components from those firms showing up inside products made by other manufacturers. A smartphone maker could, in theory, use a blacklisted chipset inside a device and still receive FCC authorization. The proposed rule would end that workaround by extending the ban down the supply chain to the component level.

The Covered List itself was created under the Secure and Trusted Communications Networks Act of 2019. Huawei and other companies were added on March 12, 2021. Since then, the FCC has steadily expanded both the list and the scope of its enforcement actions.

Former White House official Chris McGuire has voiced support for the proposal, pointing to the national security risks that come with compromised semiconductors embedded in consumer and enterprise devices.

Part of a broader crackdown

Recent FCC actions have included bans on new authorizations for certain foreign drone and router models, as well as expanded additions to the Covered List in 2025-2026.

Today, the concern extends to chips and modules that might be embedded in everything from security cameras to IoT sensors to phones. A component-level ban reflects the reality that supply chains are complicated, and a finished product can contain dozens of parts from dozens of countries. Policing only the final product leaves a significant blind spot.

What this means for investors and the tech supply chain

If the FCC moves forward with this rule, device manufacturers that currently source components from Covered List companies, even indirectly, would need to audit and potentially overhaul their supply chains. In the semiconductor world, switching suppliers can take months or years of qualification testing, redesign work, and contract renegotiation.

For crypto and blockchain hardware specifically, mining equipment, hardware wallets, and networking infrastructure all rely on semiconductor supply chains that could be affected by component-level bans. Any manufacturer using chips designed by HiSilicon or other blacklisted entities would need to find replacements or risk losing access to the US market entirely.

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