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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3301 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3301
To prohibit purchases of certain semiconductor manufacturing equipment
from foreign entities of concern or subsidiaries of foreign entities of
concern, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 2, 2025
Mr. Kelly (for himself and Mrs. Blackburn) introduced the following
bill; which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To prohibit purchases of certain semiconductor manufacturing equipment
from foreign entities of concern or subsidiaries of foreign entities of
concern, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Chip Equipment Quality, Usefulness,
and Integrity Protection Act of 2025'' or the ``Chip EQUIP Act''.
SEC. 2. PURCHASES OF SEMICONDUCTOR MANUFACTURING EQUIPMENT.
(a) Definitions.--Section 9901 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C.
4651) is amended by adding at the end the following:
``(14) The term `completed, fully assembled', with respect
to semiconductor manufacturing equipment, means the state in
which all (or substantially all) necessary parts, chambers,
subsystems, and subcomponents have been put together, resulting
in such equipment that is--
``(A) ready-to-use or ready-to-install; and
``(B) ready to be purchased directly from an
entity.
``(15) The term `ineligible semiconductor manufacturing
equipment'--
``(A) means completed, fully assembled equipment
that is manufactured, assembled, or refurbished by a
foreign entity of concern or subsidiary thereof and
designed for use in the fabrication, assembly, testing,
advanced packaging, production, or research and
development of semiconductors;
``(B) includes--
``(i) deposition equipment;
``(ii) etching equipment;
``(iii) lithography equipment;
``(iv) inspection, measuring, and test
equipment;
``(v) wafer slicing equipment;
``(vi) wafer dicing equipment;
``(vii) wire bonders;
``(viii) ion implantation equipment;
``(ix) chemical mechanical polishing;
``(x) diffusion or oxidation furnaces;
``(xi) thermal processing equipment; and
``(xii) automated material handling
systems; and
``(C) does not include any part, chamber,
subsystem, or subcomponent that enables or is
incorporated into such equipment.''.
(b) Ineligible Use of Funds.--Section 9909 of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year 2021 (15
U.S.C. 4659) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Ineligible Use of Funds.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall include in the terms of each agreement with a covered
entity for the award of Federal financial assistance under
section 9902, or with the recipient of an award made under
section 9906, prohibitions with respect to a project relating
to the procurement, installation, or use of ineligible
semiconductor manufacturing equipment, to be effective for 10
years beginning on the date on which the agreement is signed.
``(2) Waiver.--The Secretary may waive the prohibitions
referred to in paragraph (1) if--
``(A) the ineligible semiconductor manufacturing
equipment to be purchased by the applicable covered
entity is not produced in the United States or an
allied or partner country in sufficient and reasonably
available quantities or of a satisfactory quality to
support established or expected production
capabilities;
``(B) the ineligible semiconductor manufacturing
equipment at issue was manufactured and assembled by an
entity that is not a foreign entity of concern or
subsidiary thereof and was refurbished by a foreign
entity of concern or subsidiary thereof; or
``(C)(i) the use of the ineligible semiconductor
manufacturing equipment complies with the requirements
set forth in the Export Administration Regulations (as
such term is defined in section 1742 of the Export
Control Reform Act of 2018 (50 U.S.C. 4801)); and
``(ii) the Secretary, in consultation with the
Director of National Intelligence or the Secretary of
Defense, determines such waiver is in the national
security interest of the United States.
``(3) Foreign entities of concern.--Nothing in this
subsection may be construed to waive the application of section
9907.''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Commerce, Science, and Transportation.
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