- The FCC granted Intel a waiver to keep operating foreign-made automated guided vehicles in its US chip plants, exempting them from a July ban on advanced robots added to the agency’s Covered List.
- Intel claimed it had no domestic replacement and that a shutdown would immediately hurt its US production.
- Other fab operators, including TSMC, Micron, Samsung, and Texas Instruments, may seek similar relief.
Intel’s appeal for a waiver from the Federal Communications Commission (FCC) to continue to use foreign-made robots inside its US semiconductor plants has been granted. The decision spares the machines from a July import ban that the chipmaker had warned had the potential to stall its domestic manufacturing.
The order covers robotics that Intel claims are critical to its semiconductor manufacturing operations in the US.
Intel’s request to the FCC
Intel’s fleet of automated guided vehicles (AGVs), which move silicon wafers and other materials around chip factories, is the basis of the chipmaker’s request. The company told regulators that it was unsure whether routine upgrades to these vehicles would fall under the new rules. According to Quartz, the company then asked for a temporary exemption to be safe.
Intel’s argument was based on supply. It claimed no U.S. supplier offers a tested replacement that meets its needs, and replacing the existing vehicles would take years. The company also warned the FCC that any disruption is bound to affect its ability to make chips in the United States almost immediately.
Intel CEO Lip-Bu Tan added that keeping the AGVs running was “crucial” to national security, according to a filing summary on TradingView. Routine maintenance is not expected to create new cybersecurity risks, which Intel claims are the main reason for the restrictions.
The July ban that triggered the petition
In July, the FCC added advanced robots made overseas to its Covered List. This was after a White House review found that they posed unacceptable national security risks.
The rules prevent companies from changing the hardware, software, or firmware of affected devices already on the market, Bloomberg reported. Manufacturers can apply for an exemption, while companies using the equipment, such as Intel, can request a waiver.
Japanese firms Murata Machinery and Daifuku are part of the leading AGV suppliers, with companies in South Korea and Taiwan also after a foothold in the market. There is also a precedent for an exemption. Netgear was allowed to continue selling its routers in April after the Department of Defense found they posed no security risk.
Intel may not be the only U.S. chipmaker that would end up requesting a waiver. Taiwan Semiconductor Manufacturing Co., Micron (MU), GlobalFoundries, Samsung Electronics, and Texas Instruments (TXN) also operate their own chip factories and may face similar issues.
A regulator leaning into enforcement
The FCC has tightened its restrictions on other products recently. On Thursday, the agency blocked a dashboard camera and a wireless video transmitter from being sold in the U.S. because they used chips made by HiSilicon, a Huawei subsidiary on the FCC’s Covered List, according to the agency. HiSilicon had marketed the chip for surveillance, claiming it included built-in face detection.
This enforcement action was the very first under rules introduced by the FCC earlier this month. The rules block the approval of devices containing smart components from companies on its Covered List. FCC Chairman Brendan Carr stated in the announcement that the agency would continue working to protect U.S. national security.
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Opeyemi Olanrewaju
Opeyemi specializes in creating and refining high-quality content focused on cryptocurrency, global financial markets and the economy. He graduated from the University of Ibadan with an MBBS degree. He has worked as Editor-in-Chief for his College’s editorial publication and previously at CFA. For over six years, he has helped safeguard uniqueness as news editor at Cryptopolitan.
