S3301119th CongressWALLET

Chip EQUIP Act

Sponsored By: Senator Sen. Kelly, Mark [D-AZ]

Introduced

Summary

This bill would bar federal funding and purchases of completed, fully assembled semiconductor manufacturing equipment made or refurbished by specified foreign entities. It focuses on gear used in fabrication, testing, packaging, and related production work while excluding standalone parts and subcomponents.

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  • Recipients of federal semiconductor funding: Projects that get federal financial assistance under sections 9902 or awards under section 9906 could not use those funds to procure, install, or use ineligible equipment for 10 years from the agreement date.
  • Foreign entities of concern: Firms identified as foreign entities of concern or their subsidiaries would be blocked from supplying completed, fully assembled equipment to federally funded projects.
  • Domestic and allied suppliers: U.S. and allied manufacturers could gain preference because waivers are allowed only when domestic or allied sources cannot meet quantity or quality needs.
  • Grant administrators and security officials: Waivers can be granted in narrow cases, including when export rules allow it or when the Director of National Intelligence or the Secretary of Defense finds a national security justification, so agencies must review compliance and consult security officials.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Limits on foreign-made chip equipment

If enacted, the bill would define "completed, fully assembled" semiconductor equipment. It would call finished machines made or refurbished by a foreign entity of concern "ineligible." Examples include lithography, etching, deposition, inspection, wafer cutting, wire bonders, ion implantation, thermal furnaces, and automated handling systems. Small parts, chambers, subsystems, and subcomponents would be excluded. The bill would bar federal grant recipients from buying, installing, or using ineligible equipment for 10 years from the agreement signature date. The Secretary could grant narrow waivers only in three cases: lack of U.S. or allied supply, refurbishment-only by a foreign entity of concern, or Export Administration compliance plus national security approval. The definitions would take effect on enactment.

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Sponsors & CoSponsors

Sponsor

Sen. Kelly, Mark [D-AZ]

AZ • D

Cosponsors

  • Sen. Blackburn, Marsha [R-TN]

    TN • R

    Sponsored 12/2/2025

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 1/28/2026

Roll Call Votes

No roll call votes available for this bill.

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