Chip EQUIP Act

The Chip EQUIP Act restricts federal funding for semiconductor manufacturing equipment made by foreign entities designated as security concerns (or their subsidiaries). It prohibits the use of such "ineligible" equipment - defined as completed, fully assembled tools like etching, lithography, or inspection machines - in projects receiving federal financial assistance for 10 years. The bill requires federal agreements to include this ban, with limited waivers allowed only if the equipment is unavailable from U.S. or allied sources, was refurbished by a foreign entity of concern but originally made by a non-concern entity, or meets export rules and national security criteria. This directly affects companies receiving federal funds for semiconductor manufacturing facilities.