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US auto suppliers move to replace Chinese connected-car hardware
Eagle Wireless, formed in late 2025 to meet the federal connected-vehicle rules, plans to expand from about 140 employees to 1,000 over three years as it ramps module production.
U.S. automakers are pressuring parts suppliers to shift away from Chinese connected-car hardware ahead of federal deadlines, and an electronics facility near Cleveland has emerged as an early staging ground for the change, according to Reuters.
The plant belongs to Eagle Wireless, which was formed in late 2025 in response to a rule that bans certain Chinese connected-car software and hardware in U.S. vehicles by the end of the decade. Eagle’s chief executive said the company grew out of a need to counter China’s dominance in modules, and it is racing to scale production of the small circuit boards that enable wireless vehicle connectivity. It started with about 140 employees and is targeting growth to 1,000 in the next three years, while revenue expectations have increased by almost 100% for the year, to nearly $100 million.
The connected-vehicle rules were adopted in January 2025 on national security grounds tied to data privacy, and they have remained in place under the current administration. The policy prohibits Chinese connectivity software starting with the 2027 model year, and Chinese hardware starting with model year 2030, Reuters reported. Because automakers build vehicle programs years in advance, compliant suppliers may need to be secured now.
The transition is gaining urgency amid broader geopolitical and trade uncertainty, Reuters added. Industry concerns have also increased after electric-vehicle maker Polestar, which is majority owned by China’s Geely Holding, was banned last month from new vehicle sales in the U.S. under the same connected-vehicle rule. Reuters said the hardware rule targets components such as satellite communications systems and external antennas, among others.