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US Auto Parts Shift: Beyond China
21 Jul
Summary
- US vehicle hardware must shift away from China by 2030.
- Eagle Wireless is scaling up production to meet new rules.
- Shifting supply chains increases costs for automakers.
A U.S. facility south of Cleveland is at the forefront of the automotive industry's move to replace vehicle hardware sourced from China. Eagle Wireless, a new electronics maker established in late 2025, is rapidly scaling its production of connectivity modules.
This expansion is largely in response to a federal regulation enacted in January 2025, driven by national security and data privacy concerns. The rule prohibits certain Chinese connected-car software and hardware, with deadlines set for the 2027 model year for software and the 2030 model year for hardware.
Automakers are facing significant cost increases and logistical challenges as they decouple from Chinese suppliers. Eagle Wireless, for instance, still has a 5% to 15% cost gap compared to its Chinese competitors. The demand for deeper supply chain visibility is also intensifying.
While some automakers like Ford are seeking exemptions, others, including EV startups like Rivian, believe they are better positioned to adapt due to their agility in sourcing components and building in redundancies.
Eagle Wireless, despite licensing module designs from China's Quectel Wireless Solutions, is racing to develop its own technology to comply with the rules by the 2030 cutoff. This strategic licensing mirrors other industry practices, such as Ford's collaboration with CATL for battery technology.
