TP-Link blocked from US market

TP-Link just launched Wi-Fi eight routers but cannot sell them in the US because of President Donald Trump's foreign router ban. Competitors Netgear and Asus got blanket waivers despite making routers in Asia.

TP-Link's billion-dollar plan

TP-Link will invest nearly one billion dollars to make routers in the United States, creating hundreds of high-paying research and development, manufacturing, and construction jobs for American workers over the next four years.

Mississippi assembly deal announced

TP-Link announced a letter of intent with US contract manufacturer Key Tronic to begin domestic assembly of Wi-Fi eight routers in Corinth, Mississippi. Production could start as early as next year.

Full manufacturing, not just assembly

TP-Link plans surface-mount technology, many layers of testing quality control, and plastic injection molding in Mississippi, the same processes it uses in Vietnam, according to corporate affairs officer Steve Kovsky.

“You've got surface-mount technology, many layers of testing quality control, we're doing plastic injection molding, and as far as I know that is what we intend to do in Mississippi.”

The deal hinges on FCC approval

TP-Link's investment depends on the FCC granting a router ban waiver, formally known as conditional approval. The company has applied but the FCC has not yet indicated whether it will approve the waiver.

Why a waiver if building in the US?

Even though TP-Link buys chipsets from US companies like Qualcomm and Broadcom, those companies do not produce those chips in the US. TP-Link wants the waiver to import components without restriction.

“Do they count as US product?”

States oppose TP-Link waiver

Five states have sued over TP-Link's alleged ties to China. Many more are asking the FCC not to grant a waiver, claiming the company dominates the consumer router market and poses security risks.

TP-Link disputes market dominance claim

TP-Link says it has nine to ten percent market share, which is top three but not overwhelming. Its website clarifies this counts all routers that internet providers put into people's homes.

“It's about 9 to 10 percent, which is like top three. It's a good number, but we do not have an overwhelming share of the US market.”

TP-Link denies security backdoors

TP-Link says it does not sell customer data, never shares it with any government, allows no backdoors in products, and is not more susceptible to malware than other manufacturers in its category.

“We do not sell customer data or share it with any government ever. We never will. We do not allow backdoors in our products.”

No commitment to all-US production yet

TP-Link will not commit to producing all US-bound routers in the US.The administration wants at least sixty-five percent of components made in America, but TP-Link says those components mostly are not produced in the US.

“That is going to be challenging, certainly in the short term, [because] those components for the most part just are not produced in the US.”

CEO must make final call

TP-Link's CEO will ultimately decide whether to invest, depending on whether the waiver comes through and components become available. The company will not confirm details beyond final assembly at this stage.

“I think those are probably going to be business decisions that the CEO will ultimately have to make.”

Approval uncertain despite investment offer

TP-Link probably will not get conditional approval because foreign gadget bans seem designed to target companies China hawks worry about, and many congresspeople led by Senator Tom Cotton oppose TP-Link specifically.