The Chip EQUIP Act prohibits semiconductor companies that receive federal financial assistance from purchasing certain advanced manufacturing equipment from foreign countries considered threats to U.S. interests. The law applies to companies receiving government funding for semiconductor production and covers key equipment used in chip manufacturing, including lithography machines, etching tools, and inspection systems. The legislation includes narrow exceptions allowing companies to use foreign equipment if equivalent technology is not available domestically or if using it complies with export control laws and serves the national security interest as determined by the Secretary of Commerce in consultation with intelligence and defense officials. This bill aims to strengthen the domestic semiconductor supply chain and reduce dependence on equipment from foreign competitors while ensuring federally-funded semiconductor facilities use trusted, secure manufacturing tools.