FCC chip rule: First device bans issued

The Federal Communications Commission has prohibited the sale and marketing of two consumer electronics products in the United States. This action marks the first time the agency has used a new rule to ban hardware based on the specific chips inside the devices rather than the brand or model name. The banned items are a dashboard camera and a wireless video transmitter.

Both products were blocked because they incorporate a HiSilicon Smart Vision system on a chip. HiSilicon is a subsidiary of Huawei, which is listed on the FCC's Covered List of entities considered a risk to US national security. The specific component is the Hi3516CV610 UHD Smart Vision SoC, designed for surveillance and camera applications. The chip integrates WiFi, Ethernet, video encoding hardware, an Arm Cortex-A7 processor, and a neural processing unit for artificial intelligence functions.

The FCC’s concern centers on the neural processing unit within the HiSilicon chip. The agency categorizes this as a device containing logic-bearing smart components made by entities on the Covered List. According to the chip's data sheet, the Intelligent Video Engine runs on this unit and uses a dedicated multimodal large model with transformer feature acceleration. This technology allows the device to track objects across video frames, maintaining attention on subjects such as pets, faces, and parcels. While this feature helps consumers distinguish between a pet and a person, the FCC believes the logic-bearing AI could also be used for foreign surveillance purposes.

The new regulatory approach aims to close a loophole that previously allowed rebranded products to reach the market. Under the old system, manufacturers could swap labels to avoid bans, even if the internal parts came from Chinese firms on US export restriction lists. By targeting the silicon itself, the FCC can stop the technology regardless of the product's exterior branding. This method reduces the need to track every individual product label or model revision.

Huawei has faced previous scrutiny over its use of shell companies to manufacture AI chips. The company reportedly deceived TSMC into producing these chips despite US requests to halt supply to certain Chinese customers. This history of controversy has contributed to recent product bans in the United States. The current rule extends the agency's authority to ensure that covered components are identified and regulated at the hardware level.

The commission’s action follows the adoption of the rule that permits action based on internal components. The decision applies to both the dashboard camera and the wireless video transmitter immediately. The agency cited the Communications Act of 1934, which directs the FCC to protect both wired and wireless interstate and international communications. This legal basis supports the ban on devices that use the specific Huawei-linked silicon.