Netgear has made a significant move by becoming the first major consumer router maker to get an exemption from the U.S. government's new rules on foreign-made networking devices.
The Federal Communications Commission has granted conditional approval for Netgear's Nighthawk and Orbi routers, along with its cable gateways and modems.
This policy, which came about during Donald Trump's presidency, restricts the approval of consumer routers made partly outside the U.S. unless they're deemed safe for national security by the federal agencies.
With this exemption, which lasts until October 1, 2027, Netgear can keep selling its products while working on meeting domestic production goals.
To get this exemption, companies need to explain why they rely on overseas manufacturing and share a solid plan to either expand or shift their production to the U.S. Another networking company, Adtran, has also been granted a similar exemption.
This situation underscores the broader issues the industry is facing since most consumer routers rely heavily on global supply chains centered in Asia.
Analysts are concerned that this approval process might slow down product launches, limit supply, and hinder the adoption of next-gen technologies like Wi-Fi 7. It could also benefit bigger companies that are better equipped to handle these regulatory hurdles.
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