Chip EQUIP Act

The Chip EQUIP Act would restrict companies that receive funding through the CHIPS and Science Act from purchasing fully assembled semiconductor manufacturing equipment from foreign entities of concern, including China, Russia, Iran, and North Korea. The restriction would apply for ten years to any company accepting federal financial assistance for chip manufacturing or research projects. The bill would allow the Commerce Secretary to grant exceptions if suitable equipment is unavailable from the United States or allied countries, or if the purchase is determined to be in the national security interest of the United States after consultation with intelligence or defense officials.

Proponents argue the bill would protect the domestic semiconductor supply chain and prevent U.S. tax dollars from indirectly strengthening adversarial technology sectors. They contend that Chinese-made tools could create vulnerabilities that allow foreign competitors to disrupt production or gain leverage over American manufacturing. The bill currently has bipartisan support in both chambers and is under committee consideration in the Senate, though it faces long odds of passage.