The U.S. auto industry is accelerating efforts to replace Chinese connected-car hardware ahead of federal restrictions on Chinese connectivity software starting with model-year 2027 and hardware from model-year 2030. Ohio-based Eagle Wireless is rapidly expanding production, although it says its modules remain 5% to 15% more expensive than those of Chinese competitors. Volvo received authorization to continue selling vehicles under the rule, Ford is seeking authorization to import some China-produced models, and Polestar has said it will not appeal its U.S. sales ban.
Federal connected-car hardware ban
- ▪The connected-vehicle rules were adopted in January 2025 under President Joe Biden and have been maintained under the Trump administration.
- ▪A U.S. Department of Commerce policy bans Chinese and Russian connected-vehicle software starting in the 2027 model year and hardware starting in the 2030 model year.
Eagle Wireless production expansion
- ▪Eagle Wireless expects its revenue to nearly double to almost $100 million for the year and aims to grow its workforce from 140 to 1,000 employees over three years.
- ▪Eagle Wireless, an electronics manufacturer formed in late 2025 in Solon, Ohio, is expanding production to supply compliant vehicle connectivity modules.
- ▪Eagle Wireless expects to reach an annual production run rate of approximately 2 million modules by the end of the third quarter.
Supply chain compliance costs
- ▪Eagle Wireless said its connectivity modules remain 5% to 15% more expensive than those of Chinese competitors as it works toward cost parity.
- ▪The hardware ban primarily affects vehicle components such as satellite communications systems, external antennas, and microcontrollers.
Automaker exemption requests
- ▪Ford Motor has requested authorization from U.S. regulators to continue importing certain vehicle models produced in China.
- ▪Polestar will not appeal its ban from the U.S. market under the connected-vehicle rule, which takes effect in 2027.
- ▪Volvo Cars received authorization from the U.S. Department of Commerce to continue selling vehicles in the United States under the connected-vehicle rule.
U.S.-China technology decoupling
- ▪Chinese vendors account for nearly half of all global shipments of automotive cellular IoT modules.
- ▪Eagle Wireless licensed its initial module designs from China-based Quectel Wireless Solutions and must replace it with proprietary technology by 2030.
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