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 th
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 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.
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.
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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