H.R. 6207 · In committee · Foreign Trade and International Finance
Chip EQUIP Act
Sponsor: Zoe Lofgren (D-CA)
What it does
- Prohibits companies receiving federal CHIPS Act funds from purchasing semiconductor manufacturing equipment made by foreign entities of concern (China, Iran, North Korea, Russia) or their subsidiaries for 10 years.
- Requires the Department of Commerce to include these prohibitions in all agreements with covered entities receiving CHIPS funds.
- Authorizes Commerce to waive prohibitions if specified equipment is unavailable in sufficient quantities or quality in the United States, allied, or partner countries.
Official 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…
Latest action
Sep 16, 2026: Ordered to be Reported by the Yeas and Nays: 39 - 0.
Committee: House Energy and Commerce