The US Federal Communications Commission (FCC) has issued its first bans under a new rule allowing it to block devices based on the internal chips they contain, rather than specific products or brands. The bans, announced on 23 October 2026, target a dashboard camera and a wireless video transmitter because they contain a chip from HiSilicon, a Huawei subsidiary on the US government's national security risk list.
The FCC's new rule closes a loophole that allowed manufacturers to sell products in the US that contain Chinese components on export restriction lists by rebranding or repackaging them.
The two banned devices are a dashboard camera and a wireless video transmitter, both of which use HiSilicon's Hi3516CV610 UHD Smart Vision system on a chip (SoC). HiSilicon, a subsidiary of Huawei, is on the FCC's "Covered List" of entities deemed to pose a national security risk.
The Hi3516CV610 SoC is designed for surveillance and camera products, including vehicle dashcams and wireless CCTV systems. It includes WiFi, Ethernet, video encoding chips, an Arm Cortex-A7 processor, and a neural processing unit (NPU) for artificial intelligence features.
The FCC stated that the NPU, which it describes as a logic-bearing "smart" component produced by a Covered List entity, is the concern. According to the SoC data sheet, the NPU runs a built-in dedicated multimodal large model and transformer feature acceleration. This allows the AI model to track relationships between objects across video frames, identifying specific items such as faces, pets, human figures and parcels.
For consumers, this could enable a surveillance camera to distinguish between an escaped pet and a person stealing a parcel. However, the FCC believes the AI capabilities could be used for more nefarious purposes, including surveying US citizens and logging faces for foreign surveillance.
Huawei has previously been involved in controversy over AI chips. The company was accused of using shell companies to deceive TSMC into producing AI chips for it, violating US requests for TSMC to halt supplies to a list of Chinese customers. These and other incidents have led to prior product bans in the United States.
Analysis
Why This Matters
- The FCC's new chip-level rule represents a major shift in US technology regulation, moving from banning entire brands or specific models to targeting individual components.
- This change could affect many consumer electronics that use chips from Chinese manufacturers on the Covered List, potentially disrupting supply chains.
- The ruling highlights growing US concern about AI-enabled surveillance hardware, particularly components that can recognise faces and track objects.
Background
Huawei, a Chinese telecommunications giant, has been under US sanctions since 2019, with the government alleging it poses a national security threat due to its ties to the Chinese Communist Party and potential for espionage. The FCC's Covered List includes companies deemed to present a risk to US communications networks. HiSilicon, Huawei's chip design subsidiary, has been on this list for several years. Previous bans focused on entire product categories from specific companies, but the new rule allows the FCC to block any device containing a chip from a banned entity, regardless of brand or product model.
Key Perspectives
FCC and US government: The rule closes a loophole that allowed banned chips to enter the US market through rebranded products. The NPU's AI capabilities, particularly facial recognition, are viewed as a potential tool for foreign surveillance of US citizens.
Consumer electronics industry: Manufacturers of devices using affordable, advanced chips from non-US suppliers may need to redesign products, potentially increasing costs and limiting features. The rule could reduce consumer choice and increase prices for surveillance equipment.
Critics/Skeptics: Some may question whether the risk justifies a complete ban on consumer products like dashcams, arguing the AI features described are common in many modern devices and primarily designed for convenience rather than surveillance.
What to Watch
- Whether other devices containing HiSilicon or other Covered List chips will be banned next.
- How manufacturers respond, including possible redesigns or sourcing of alternative, non-banned chips.
- Potential legal challenges to the FCC's new rule from affected companies or trade groups.