Covered List Roundup: FCC Takes Steps to Weed Out Equipment with Prohibited Components, Grants First Robotics Waiver
Last week, the Federal Communications Commission (FCC) took two notable steps in its administration of the agency’s Covered List of communications equipment and services deemed to pose an unacceptable risk to U.S. national security. First, the FCC Office of Engineering and Technology (OET) precluded two products from being marketed or sold in the U.S. based on the presence of logic-bearing components made by Huawei subsidiary HiSilicon, pursuant to new component restrictions that went into effect on October 13. This action underscores the Commission’s commitment to enforcing these new restrictions, which may present unique challenges for entities that manufacture or sell technology products given the absence of a centralized list of entities whose components trigger the prohibition. Second, OET granted a waiver to allow hardware modifications to a grandfathered robotics product for the first time, suggesting that the agency will continue to entertain waivers while its more permanent rules on grandfathered Covered List equipment remain pending.
Background: FCC Covered List and Equipment Authorization Restrictions
FCC rules prohibit equipment that appears on the agency’s Covered List from receiving radiofrequency equipment authorization, which is required for virtually all products that emit radiofrequency energy (either intentionally or unintentionally). During the first few years of the Covered List’s operation, this restriction was limited to certain equipment made by named entities identified on the list, such as telecommunications equipment made by Huawei and certain video surveillance equipment made by Hikvision.
In October 2025, the FCC expanded the restrictions to also treat as covered any products that contain modular transmitters produced by a named Covered List entity. And, beginning in December 2025, a series of new entries on the Covered List began to include all “foreign-produced” products falling under certain categories, irrespective of the producing entity. Under this new framework, specified product classes across industry sectors are subject to Covered List restrictions and the associated prohibition on equipment authorization. So far, the foreign-produced products subject to these restrictions include drones, consumer-grade routers, utility-interactive power inverters, and advanced robotic devices. Entities that make products subject to these “sector-based” entries can seek a Conditional Approval from the Department of War (DoW) or Homeland Security (DHS) to be exempt from the Covered List and continue to receive FCC equipment authorization as usual, although doing so requires the applicant to commit to a manufacturing onshoring plan for the covered product.
Throughout 2026, the FCC has continued to take steps to implement and iterate on these Covered List restrictions. These steps include a recent Third Report and Order that expanded on the modular transmitter rule, barring from equipment authorization any devices, regardless of producer or location of production, that incorporate “logic-bearing components” made by entities identified on the Covered List, if the Covered List entity that made the component would themselves be barred from obtaining equipment authorization for the end product in which their component was used (e.g., telecommunications equipment incorporating a logic-bearing component made by Huawei, certain video surveillance equipment incorporating such a component made by Hikvision). Notably, that restriction only applies to components made by entities that are actually identified on the Covered List; it does not extend to components made by entities that make foreign-produced routers or advanced robotic devices, for example, unless those entities are separately named on the list. That restriction went into effect on October 13, 2026.
Products Containing HiSilicon Chips Prevented from Receiving Equipment Authorization
On October 22, 2026, the FCC announced that OET had taken steps to prevent two products – a dashboard camera and a wireless video transmitter – from being marketed or sold due to the presence of logic-bearing components made by a Covered List entity in violation of the new restrictions in effect on October 13. In particular, the Commission explained that the devices “contained a dangerous foreign chip produced by a Covered List entity – namely, HiSilicon, a subsidiary of Huawei.”
This prompt action in the wake of the new restrictions on logic-bearing components underscores the FCC’s commitment to ensuring that these rules are appropriately enforced. Indeed, in the press release, FCC Chairman Brendan Carr touted OET’s action, emphasizing that “[t]he FCC will continue to act with vigilance in protecting and promoting America’s national security” and “will continue to act aggressively to enforce [its] rules and secure American networks.”
Compliance with these new restrictions, however, could pose challenges even for well-meaning entities that manufacture or assemble products that require FCC equipment authorization, not least because there is no authoritative, complete list of entities that make components that trigger the prohibition. This is because the Covered List by default encompasses all subsidiaries and affiliates of the named entities like Huawei and Hikvision. Although entities on the list for producing equipment have been required since 2023 to file and maintain with the FCC a list of all relevant subsidiaries that produce end user equipment, they have to date not been required to file a list of their subsidiaries and affiliates that make logic-bearing components. And while there is undoubtedly some overlap between the FCC list and those subsidiaries that make logic-bearing components, it is not clear how much overlap there is. Indeed, Huawei’s 2023 affiliate and subsidiary filing, which Huawei has never updated, did not name HiSilicon at all. (Through a separate proceeding, Covered List entities eventually will be required to submit to the FCC a complete list of all of their subsidiaries and affiliates, but that rule hasn’t gone into effect yet.) Moreover, things get more complicated with the drone manufacturers identified on the Covered List – DJI and Autel – because in that context, the scope extends not just to their subsidiaries and affiliates, but also “any entity in a joint venture” or that “has a technology sharing or licensing agreement” with DJI or Autel.
Accordingly, although the FCC has published a list of certain subsidiaries and affiliates based on the state of play over a year ago, there is no authoritative source describing which entities make “logic-bearing components” that could result in the host equipment being barred from equipment authorization. This means that equipment manufacturers must conduct their own diligence on their supply chains to ensure that no problematic component suppliers are involved.
First Hardware Waiver Issued for a Grandfathered Advanced Robotic Device
In addition to continuing to expand the impact of the Covered List and the universe of equipment that is barred from receiving authorization, the FCC also has taken steps to afford some flexibility to entities that make foreign-produced equipment that already had equipment authorization before the relevant product sector was added to the Covered List. Although such previously authorized equipment is “grandfathered” and can continue to be imported, marketed, and sold in the United States, the product as produced must be identical to what was authorized; changes are squarely prohibited. OET has granted “blanket waivers” each time it has added a foreign-produced product sector to the Covered List, allowing affected entities to make certain software and firmware updates to their previously authorized equipment through permissive change policy to ensure the continued functionality of the devices. It also has issued case-by-case waivers to particular entities (including device manufacturers, customers, and trade associations) to allow other types of changes to previously authorized equipment. In the Third Further Notice of Proposed Rulemaking issued with the Report and Order discussed above, the FCC has proposed to codify some of these waivers to allow broader relief for companies that need to make changes to previously authorized products that fall under sector-based Covered List entries.
On October 22, 2026, OET granted a waiver to Intel to allow certain hardware changes to automated guided vehicles (AGVs) used in Intel’s factories for one year. This waiver is notable for a few reasons:
- It was the first hardware waiver issued in the robotics context (previous waivers have been limited to covered routers).
- Prior waivers have allowed relief such as like-for-like or pin-to-pin component swaps or hardware depopulation to allow a grandfathered product to continue to be manufactured. But the waiver issued to Intel allows ongoing changes to robots already in use, marking the first time this relief has been afforded specifically for equipment in the field.
- Although some prior waiver requests had redacted certain information as confidential, in Intel’s waiver even the nature of the hardware changes was withheld as confidential, giving similarly situated entities little insight into the range of hardware changes for which a waiver currently may be available. At the same time, the FCC order granting the waiver notes that Intel made commitments at least similar to what other waiver recipients have promised – namely, that the requested changes will not “improve the performance” or “alter the functionality” of the radiofrequency‑related characteristics of the AGVs, will not “introduce new capabilities” in those products, and will not involve replacing a U.S.-produced component with a foreign one.
- There had been some speculation that because the FCC is proposing to codify the ability to make certain hardware and software changes, it may not continue granting waivers and instead focus on finalizing the rules. The first waiver for a robotics product suggests that waivers will continue to be available while the Third Further Notice is pending.
Companies that make or rely on now-covered equipment that was already authorized when the equipment was added to the Covered List should continue to monitor developments in the waiver space and determine whether any relief is needed for those previously authorized products. In addition to an FCC waiver, previously authorized products may obtain relief from Covered List restrictions via Conditional Approval from DoW/DHS.
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Wiley’s deep and experienced bench advises clients on the full range of equipment authorization, Covered List, and national security issues before the FCC. For more information on these FCC actions or other issues related to the Covered List, please contact one of the authors listed on this alert.
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