Referred to the Committee on Energy and Commerce, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Chip EQUIP Act prohibits companies receiving federal semiconductor manufacturing subsidies from purchasing advanced semiconductor production equipment made by or associated with foreign entities of concern—particularly China and other strategic competitors. The bill defines "ineligible" equipment as completed, fully assembled machinery used for chip fabrication, including lithography, etching, deposition, and testing systems. These restrictions would apply to federal financial assistance recipients for 10 years from when they sign agreements with the government. The legislation includes limited exceptions if comparable equipment isn't available from the United States or allied countries, if equipment was originally made elsewhere but only refurbished by a foreign entity, or if the Secretary of Defense and Director of National Intelligence determine use is in the national interest. The bill aims to protect federal investment in domestic semiconductor manufacturing by ensuring government-funded facilities don't rely on equipment from countries that may pose national security risks.
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