U.S. Auto Industry Races to Replace Chinese Connected-Car Hardware

The U.S. automotive industry is accelerating efforts to remove Chinese-made connected-car hardware from future vehicles as new federal regulations require automakers to shift to alternative suppliers over the next several years.

The changes stem from U.S. national security rules that prohibit Chinese connectivity software in 2027 model-year vehicles and Chinese-designed or supplied connectivity hardware beginning with 2030 models.

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New Rules Drive Supply Shift

Automakers are redesigning supply chains well ahead of the deadlines because vehicle development typically takes several years.

The regulations target components that enable wireless communication between vehicles and external networks, including communication modules, antennas, and related electronic systems.

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U.S. Suppliers Expand

Ohio-based Eagle Wireless is among the companies rapidly increasing production to meet expected demand.

Founded in 2025, the company is expanding manufacturing capacity and workforce as automakers seek suppliers that comply with the upcoming federal requirements.

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Executives say demand has grown quickly as manufacturers begin replacing Chinese-made connectivity hardware.

Higher Costs Ahead

Moving production away from China is expected to increase costs.

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Industry estimates suggest replacement connectivity modules currently cost 5% to 15% more than comparable Chinese products, although suppliers are working to narrow that gap.

Automakers may also face additional expenses while restructuring long-established supply chains.

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Supply Chains Under Review

Manufacturers are conducting detailed reviews of their suppliers to ensure components meet the new compliance standards.

The regulations require companies to verify where hardware is designed, developed, and manufactured, making supply-chain transparency more important than ever.

Automakers Adjust Strategies

Some automakers believe they are well positioned to adapt because they already use diversified supplier networks.

Others are requesting limited exemptions while they transition to compliant components, particularly for imported vehicle models.

Industry groups say the shift will require close coordination between automakers, suppliers, and regulators over the coming years.

Balancing Security and Innovation

Supporters of the rules argue they strengthen national security by reducing reliance on foreign technology in connected vehicles.

At the same time, industry experts note that replacing established suppliers without disrupting production remains a significant challenge.

As automakers prepare for the 2027 and 2030 deadlines, the transition is expected to reshape the connected-car supply chain across North America while encouraging greater domestic production of critical automotive electronics.