Install
Chip EQUIP Act
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.
- Introduced
- Committee
- Passed Senate
- Passed House
- To President
- Became law
Summary
Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025 or the Chip EQUIP Act
This bill prohibits companies that receive certain federal funds from purchasing specified semiconductor manufacturing equipment made by foreign entities of concern (e.g., companies owned or controlled by China, Iran, North Korea, or Russia) or their subsidiaries for the federally funded project.
The CHIPS Act of 2022, which became law in August 2022, appropriated funding for the Department of Commerce to carry out the CHIPS for America provisions enacted in the National Defense Authorization Act for Fiscal Year 2021. These provisions included appropriations for financial incentives to expand domestic manufacturing capacities across the semiconductor supply chain, as well as for research and development programs.
Under the bill, Commerce must include in the terms of each agreement with a covered entity (e.g., companies receiving CHIPS funds) prohibitions with respect to a project relating to the procurement, installation, or use of the specified semiconductor manufacturing equipment. The prohibitions must be effective for 10 years beginning on the date on which the agreement is signed.
The bill authorizes Commerce to waive these prohibitions under certain circumstances, such as if the specified semiconductor manufacturing equipment 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.
Summary by the Congressional Research Service, Library of Congress.
Actions
- Dec 2, 2025 Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Dec 2, 2025 Introduced in Senate
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