The Chip EQUIP Act prohibits companies that receive federal funding for semiconductor manufacturing from purchasing certain semiconductor equipment made by foreign entities of concern or their subsidiaries. The bill specifically targets completed, fully assembled equipment used in fabrication, assembly, testing, and research of semiconductors, including lithography machines, etching equipment, and inspection tools. The restrictions apply to companies receiving federal financial assistance under semiconductor-related programs, though the Secretary of Commerce can waive these restrictions if the equipment is not available in sufficient quantity or quality from U.S. or allied countries, or if national security interests are served. The legislation does not restrict individual parts or components that go into the equipment, only finished products. This measure is intended to protect the domestic semiconductor supply chain and reduce dependence on equipment from countries deemed security concerns.