II 

118TH CONGRESS 

2D SESSION S. 5002 

To prohibit covered entities that receive financial assistance relating to semiconductors from purchasing certain semiconductor manufacturing equipment from foreign entities of concern or subsidiaries of foreign entities 

of concern, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 10, 2024 

Mr. KELLY (for himself and Mrs. BLACKBURN) introduced the following bill; 

which was read twice and referred to the Committee on Commerce, 

Science, and Transportation 

A BILL 

To prohibit covered entities that receive financial assistance 

relating to semiconductors from purchasing certain semiconductor manufacturing equipment from foreign entities 

of concern or subsidiaries of foreign entities of concern, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘The Chip Equipment 

5 Quality, Usefulness, and Integrity Protection Act of 

6 2024’’ or the ‘‘Chip EQUIP Act’’. 


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•S 5002 IS

1 SEC. 2. PURCHASES OF SEMICONDUCTOR MANUFAC2 TURING EQUIPMENT. 

3 (a) DEFINITIONS.—Section 9901 of the William M. 

4 (Mac) Thornberry National Defense Authorization Act for 

5 Fiscal Year 2021 (15 U.S.C. 4651) is amended by adding 

6 at the end the following: 

7 ‘‘(14) The term ‘completed, fully assembled’ 

8 means the state in which all (or substantially all) 

9 necessary parts, chambers, subsystems, and sub10 components have been put together, resulting in a 

11 ready-to-use or ready-to-install item to be directly 

12 purchased from an entity. 

13 ‘‘(15) The term ‘ineligible equipment’— 

14 ‘‘(A) means completed, fully assembled 

15 semiconductor manufacturing equipment that is 

16 manufactured or assembled by a foreign entity 

17 of concern or subsidiary of a foreign entity of 

18 concern and used in the fabrication, assembly, 

19 testing, advanced packaging, production, or re20 search and development of semiconductors; 

21 ‘‘(B) includes— 

22 ‘‘(i) deposition equipment; 

23 ‘‘(ii) etching equipment; 

24 ‘‘(iii) lithography equipment; 

25 ‘‘(iv) inspection and measuring equip26 ment; 


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•S 5002 IS

1 ‘‘(v) wafer slicing equipment; 

2 ‘‘(vi) wafer dicing equipment; 

3 ‘‘(vii) wire bonders; 

4 ‘‘(viii) ion implantation equipment; 

5 ‘‘(ix) chemical mechanical polishing; 

6 and 

7 ‘‘(x) diffusion or oxidation furnaces; 

8 and 

9 ‘‘(C) does not include any part, chamber, 

10 subsystem, or subcomponent that enables or is 

11 incorporated into such equipment.’’. 

12 (b) INELIGIBLE USE OF FUNDS.—Section 9902 of 

13 the William M. (Mac) Thornberry National Defense Au14 thorization Act for Fiscal Year 2021 (15 U.S.C. 4652) 

15 is amended by adding at the end the following: 

16 ‘‘(j) INELIGIBLE USE OF FUNDS.— 

17 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

18 the Secretary shall include in the terms of each 

19 agreement with a covered entity for the award of 

20 Federal financial assistance under this section prohi21 bitions with respect to a project relating to the pro22 curement, installation, or use of ineligible equip23 ment, to be effective for the duration of the agree24 ment. 


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•S 5002 IS

1 ‘‘(2) WAIVER.—The Secretary may waive the 

2 prohibitions described in paragraph (1) if— 

3 ‘‘(A) the ineligible equipment to be pur4 chased by the applicable covered entity is not 

5 produced in the United States or an allied or 

6 partner country in sufficient and reasonably 

7 available quantities or of a satisfactory quality 

8 to support established or expected production 

9 capabilities; or 

10 ‘‘(B)(i) the use of the ineligible equipment 

11 complies with the requirements set forth in the 

12 Export Administration Regulations, as defined 

13 in section 1742 of the Export Control Reform 

14 Act of 2018 (50 U.S.C. 4801); and 

15 ‘‘(ii) the Secretary, in consultation with the 

16 Director of National Intelligence or the Sec17 retary of Defense, determines the waiver is in 

18 the national security interest of the United 

19 States. 

20 ‘‘(3) FOREIGN ENTITIES OF CONCERN.—Noth21 ing in this subsection shall be construed to waive the 

22 application of section 9907.’’. 

Æ 


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