Intel Asks the FCC to Exempt the Robots Its US Chip Factories Can’t Run Without

October 20 — According to Bloomberg, Intel has asked the US Federal Communications Commission (FCC) for an exemption from a recent ban on foreign-made advanced robots, saying it needs to keep using this “niche” equipment that is critical to American semiconductor manufacturing.

The petition, filed on 16 October and made public on Monday local time, shows Intel’s concern that the automated guided vehicles (AGVs) used in its factories could be caught by the sweeping import and sales ban on foreign technologies. Such devices carry materials around inside semiconductor factories.

In the filing Intel says keeping these robots running is “critical” to US national security. No mature domestic substitute currently meets Intel’s stringent standards, and replacing existing equipment would take years. Any interruption, it says, would “immediately and negatively affect Intel’s semiconductor manufacturing capacity in the United States.”

In July this year, the FCC added foreign-made advanced robotic devices to its “covered list,” which also includes Wi-Fi routers and drones; citing national security risks, such products are barred from the US market.

The ban does not affect equipment already in use in the country, but companies cannot upgrade the hardware, software or firmware of existing devices. Companies whose products fall within the ban can apply to the FCC and the US Department of Defense for a conditional exemption.

Intel told the commission it was not certain whether upgrading its AGVs would violate the rules. The petition says that, as a precaution, the company is applying for a conditional exemption in order to keep these particular AGVs running.

“The routine maintenance operations Intel plans in order to extend the service life of this fleet of mainstay AGVs will not introduce cybersecurity risks, and cybersecurity is the core reason behind these restrictions,” Intel wrote.

Murata Machinery and Daifuku of Japan are the main suppliers of such equipment, while manufacturers in South Korea and Taiwan are also trying to break into the market.

Other companies that run chip factories — including TSMC, Micron, GlobalFoundries, Samsung Electronics and Texas Instruments — may also need similar exemptions in future.

The FCC’s covered list has become a common tool for pushing domestic technology investment in the US, and FCC commissioner Gomez has called for more transparency in the import-ban rules. The US government increasingly uses the FCC, rather than other forms of import control, to push companies to adopt American-made equipment and technology. In the past the FCC imposed more targeted bans on telecoms equipment makers such as Huawei and ZTE, and on cybersecurity firms such as Kaspersky Lab; last year, however, it shifted to banning whole categories of products rather than specific untrusted companies.

Intel’s request is not unusual. Router maker Netgear obtained an exemption in April this year after the Department of Defense found that its products did not threaten US national security. AT&T, Verizon and a broadband industry association were also approved to carry out hardware upgrades on consumer Wi-Fi routers.

Intel’s shares closed up 2.4% on Monday local time.