The US auto industry is racing to replace Chinese-made connected vehicle hardware ahead of federal deadlines, with a new Ohio factory at the center of the supply chain overhaul.
Eagle Wireless, formed in late 2025 specifically to address the looming regulations, is scaling production of wireless connectivity modules at its Solon, Ohio facility. The company started with 140 employees and aims to reach 1,000 within three years, with revenue expectations surging nearly 100% to $100M, according to President TJ Dembinski.
The push stems from a Bureau of Industry and Security rule adopted in January 2025 that bans Chinese connectivity software from model year 2027 vehicles and Chinese-designed or manufactured hardware from model year 2030. The rule, kept in place under the Trump administration, targets components such as satellite communications systems, external antennas, and microcontrollers that enable external vehicle connectivity.
Chinese vendors currently account for nearly half of global automotive cellular IoT module shipments, making the transition costly. Shifting sourcing away from China adds 5% to 15% to module costs, industry executives say. The rule “requires a deep examination of supply chains and aggressive compliance timelines,” said Hilary Cain of the Alliance for Automotive Innovation.
Automakers including Ford have already sought authorization to continue importing some China-produced models. The Polestar ban in June under the same rule heightened industry concern, as the Geely-owned EV maker was blocked from US sales. Rivian says it is better positioned than legacy automakers to shift suppliers quickly.
Eagle competes against established players like Rolling Wireless and LG in North America. Security firm Finite State CEO Matt Wyckhouse, an Eagle adviser, said the affected components span satellite systems, antennas, and microcontrollers critical to vehicle connectivity. The company expects to reach a 2-million-module annual run rate by the end of Q3 2026.
