Chinese IoT Modules in the U.S: Usage Trends and Regulatory Challenges
For years, there have been concerns across the telecom and IoT industry about the growing use of hardware from Chinese manufacturers. Although there haven’t been many definitive cases of harm, the dominance of these manufacturers has led to increases scrutiny on potential cybersecurity and compliance risks in connected products. Now based on 1NCE's customer insights, we have a clearer view of the use of Chinese modules – internal data shows Chinese modules account for nearly one-third of modules used by our customers. That number is expected to rise, which has led to action from the U.S. government, including new rules from the Bureau of Industry and Security (BIS), the establishment of the Build America, Buy America Act (BABAA), and increased tariffs imposed. With continued uncertainty related to these actions from the U.S. and other governments, businesses must act now to thoroughly assess their projects and mitigate potential risks.
What IoT Modules Are Used in the U.S. Today?
A recent internal analysis by 1NCE offers insight into this landscape, revealing that 31% of all IoT modules used by our U.S. customers come from China. Here's a look at the most commonly used Chinese IoT modules in the U.S. today, based on 1NCE customer data:
Manufacturer | % in the US |
|---|---|
Quectel Wireless Solutions Co Ltd | 19.64% |
SIMCOM Wireless Solutions Co Ltd | 9.27% |
MeiG Smart Technology Co Ltd | 0.88% |
Fibocom Wireless | 0.73% |
Shenzhen Neoway Technology | 0.15% |
Shanghai MobileTek | 0.15% |
Quectel Wireless Solutions
Founded in 2010 and headquartered in Shanghai, China, Quectel has become a leading global provider of cellular and GNSS solutions. They offer a broad range of options for IoT applications across sectors like automotive, industrial, and consumer electronics. Our analysis of over 24,000 1NCE customers from 170+ countries show Quectel as the top provider in the U.S., representing 19.64% of all 1NCE customers.
Quectel models based on 1NCE U.S. customer analysis | |
EC25 Series | 9.10% |
BG95 | 7.83% |
EG25 Series | 5.35% |
BG96 | 5.28% |
EG91 Series | 2.23% |
SIMCom Wireless Solutions
SIMCom which is a subsidiary of SUNSEA AIOT, was established in 2002 and is also based in Shanghai, China. It ranks as the second most common IoT module company according to 1NCE's analysis. It is also the second popular module with our U.S. customers, representing 9.27%. SIMCom offers various technologies, including 2G, 3G, 4G, 5G, and LPWA. The company has R&D facilities in several Chinese cities, such as Shanghai, Chongqing, Shenzhen, Xi'an, and Shenyang, and a global sales network.
SIMCom models based on 1NCE U.S. customer analysis | |
A7670 Series | 5.73% |
SIM7600X | 2.74% |
SIM7000X | 1.21% |
SIM7600X-H | 1.08% |
SIM7080 | 1.08% |
MeiG Smart Technology
Founded in 2007 and headquartered in Shenzhen, China, the company focuses on developing and manufacturing wireless communication modules and solutions for IoT and automotive applications. They have a relatively small customer base and a modest impact on the overall market, accounting for 0.88%.
MeiG models based on the 1NCE US customers analysis | |
SLM750 | 0.25% |
SLM320 | 0.6% |
Fibocom Wireless
Fibocom Wireless Systems is a Chinese technology company, founded in 1999, that provides IoT modules for global use. Fibocom IoT modules are frequently used in the Logistics sector and form 0.73%. The company offers a diverse range of IoT modules, including cellular modules (such as LTE, 5G, and NB-IoT), GNSS modules, short-range modules, and more.
Fibocom models based on 1NCE U.S. customer analysis | |
NL668 | 0.38% |
MC610 | 0.25% |
M510 | 0.06% |
L610 | 0.06% |
Sequans Communications
Founded in 2003 and headquartered in Paris, France, Sequans Communications develops and markets 4G and 5G cellular IoT chips and modules. Sequans has a global footprint with offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China. According to 1NCE’s global customer data analysis, Sequans ranks as a Top 20 IoT module supplier. It represents 0.31% of customers in the U.S.
Sequans models based on 1NCE U.S. customer analysis | |
GM02S | 0.19% |
GM02SP | 0.06% |
GC02S1 | 0.06% |
Shenzhen Neoway Technology
Established in 2006, is a Chinese company that specializes in providing industrial IoT wireless communication modules and solutions. Based on analysis of the 1NCE IoT customer base, Neoway ranks as a Top 20 IoT module provider worldwide. According to our data, Neoway devices are utilized by 0.15% of consumers across the U.S.
Shenzhen models based on 1NCE U.S. customer analysis | |
N58 | 0.05% |
N75 | 0.05% |
M580 | 0.05% |
Shanghai MobileTek Communication
A Chinese technology company founded in 2002, Shanghai MobileTek Communication is one of the leading suppliers of IoT modules by 1NCE’s customer base. Based on usage, Shanghai MobileTek ranks as a Top 20 IoT module provider. 1NCE customers from the U.S. have a stronger preference for these modules compared to other regions but still has a relatively low presence, covering 0.15% of U.S. customers. One particular model, the MobileTek L710 module, is used by 1.13% of our U.S. customers.
What’s the Real Risk?
Cellular modules are intelligent and often central to how a device operates—supporting firmware updates, remote diagnostics, GPS tracking, and more. This makes them powerful but also dangerous if compromised. The concern is not just theoretical: If a module’s firmware or embedded software is manipulated, it could serve as a gateway for remote control, data exfiltration, or even operational disruption—especially when the modules are used in sensitive infrastructure like transportation, energy grids, or military-adjacent systems.
The Regulatory Landscape in Brief
In response to growing geopolitical and cybersecurity risks, the U.S. has introduced new regulatory processes, like the Build America, Buy America Act (BABAA), as well as updated rules from the Bureau of Industry and Security (BIS). BABAA requires that at least 55% of the value of manufactured products in federally funded projects to be sourced domestically—impacting SIMs, modules, and software. The BIS is rolling out new regulations starting in 2027 that ban the use of communications hardware or software in connected vehicles if linked to the U.S. government’s list of foreign adversaries, including China. Adding to the pressure, the U.S. government increased base tariff rises to 145% before dropping them to 30%. These steep tariffs, and the uncertain direction of future tariff adjustments, directly impact key IoT categories like communication modules, sensors, and integrated circuits. As a result, companies are being forced to reevaluate their sourcing strategies, restructure supply chains, and strengthen compliance efforts to stay competitive in this rapidly changing environment.
Supporting Secure, Compliant IoT with 1NCE
At 1NCE, our services are designed to provide both reliability and security, using industry best practices that align with regulatory requirements. While some customers still use foreign modules for cost reasons, 1NCE ensures that the core software and connectivity stack—built in the U.S.—accounts for over 90% of the delivered value. This is crucial for meeting BABAA’s 55% domestic content threshold. We also help customers trace SIM origins, document module usage, and prepare for BIS-related audits with transparent records and declarations. Whether you’re rolling out connected vehicle systems or managing thousands of smart meters, we’ll continue to share all the information we have so that you stay compliant, secure, and future-ready.