TP-Link has proposed a $1 billion investment in US-based manufacturing to secure an exemption from FCC import restrictions on foreign-made wireless routers. The company aims to assemble its upcoming Wi-Fi 8 models, Archer 8 Ultra and Deco 8 Ultra, domestically starting next year.

The manufacturer plans to develop and maintain all firmware and software for these devices within the US using local engineering teams. Currently, TP-Link is excluded from temporary import permits granted to other suppliers, as authorities investigate the company's ties to China.

A coalition of 21 state attorneys general has petitioned the Department of Defense and the Department of Homeland Security to deny the request. They cite data indicating that 99.5 percent of components used at TP-Link's Vietnam facility originate from China, posing potential security risks.

TP-Link has rejected these security concerns as baseless rhetoric. The company maintains that its US customer data is encrypted and stored on Amazon Web Services infrastructure in Virginia, adhering to independent audit standards.