YourVoice.Now Summary
Corporate BenefitsChipmakers getting federal CHIPS money couldn't buy key factory machines from foreign-threat firms for 10 years
Corporate Benefits
The Commerce Secretary could lift the ban if no U.S. or allied maker can sell enough good machines. It could also be lifted when a machine was made or put together by an unflagged company and only fixed up by a flagged one. A third path: the use meets export rules, and the Secretary decides, with the top spy or defense chief, that it helps U.S. security.
Companies that get CHIPS grants or research awards would have to promise not to buy, install, or use whole chip-making machines from flagged foreign companies for the funded project. The promise lasts 10 years from the day the deal is signed. Spare parts are not covered.
More about this bill
Most people would see no direct change in daily life. The bill targets companies that get federal CHIPS money to build, expand, or research chips in the U.S. They would have to agree not to buy, install, or use certain chip-making machines from companies the law treats as foreign threats. Those include companies on U.S. sanctions or terror lists, or controlled by certain foreign governments. The ban would be written into each funding deal and last 10 years from the day it is signed. It covers whole, ready-to-use machines, such as those that etch, print, or test chips. Spare parts and pieces that go into the machines are not covered. The Commerce Secretary could lift the ban in three cases. One is when no U.S. or allied maker can supply enough good machines. Another is when a machine was made or put together by an unflagged company and only refurbished by a flagged one. The third needs export rules to be met, plus a finding that a waiver serves national security.
Congressional 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.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-11-20
- Date Added
- 2026-09-25
- Source
- Congress.gov →
Like reading a bill in plain English?
We're building an app that does this for every bill in Congress and lets you tell your reps how you want them to vote. We're a small team getting ready to launch, and we're trying to show investors that real people want this. Be one of them. Help us get it built. Leave your email and we'll tell you the moment the app is ready.