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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8826 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 8826

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 HOUSE OF REPRESENTATIVES

                             June 25, 2024

Ms. Lofgren (for herself and Mr. Lucas) introduced the following bill; 
  which was referred to the Committee on Energy and Commerce, and in 
  addition to the Committee on Science, Space, and Technology, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Chip Equipment Quality, Usefulness, 
and Integrity Protection Act of 2024'' or the ``Chip EQUIP Act''.

SEC. 2. DEFINITIONS.

    (a) In General.--Section 9901 of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 
4651) is amended--
            (1) by redesignating paragraphs (2), (3), (4), (5), (6), 
        (7), (8), (9), (10), (11), (12), and (13) as paragraphs (3), 
        (4), (6), (7), (8), (9), (10), (11), (12), (13), (14), and 
        (15), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) The term `completed, fully assembled' means the state 
        in which all (or substantially all) necessary parts, chambers, 
        subsystems, and subcomponents have been put together, resulting 
        in a ready-to-use or ready-to-install item to be directly 
        purchased from an entity.'';
            (3) in subparagraph (A) of paragraph (4), as so 
        redesignated, by striking ``paragraph (2)'' and inserting 
        ``paragraph (3)''; and
            (4) by inserting after such redesignated paragraph (4) the 
        following new paragraph:
            ``(5) The term `ineligible equipment'--
                    ``(A) means completed, fully assembled 
                semiconductor manufacturing equipment that is 
                manufactured or assembled by a foreign entity of 
                concern or subsidiary of an entity of concern and used 
                in the fabrication, assembly, testing, advanced 
                packaging, production, or research and development of 
                semiconductors;
                    ``(B) includes--
                            ``(i) deposition equipment;
                            ``(ii) etching equipment;
                            ``(iii) lithography equipment;
                            ``(iv) inspection and measuring equipment;
                            ``(v) wafer slicing equipment;
                            ``(vi) wafer dicing equipment;
                            ``(vii) wire bonders;
                            ``(viii) ion implantation equipment;
                            ``(ix) chemical mechanical polishing; and
                            ``(x) diffusion or oxidation furnaces; and
                    ``(C) does not include any part, chamber, 
                subsystem, or subcomponent that enables or is 
                incorporated into such equipment.''.
    (b) Ineligible Use of Funds.--Section 9902 of the William M. (Mac) 
Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 
U.S.C. 4652) is amended by adding at the end the following new 
subsection:
    ``(j) Ineligible Use of Funds.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall include in the terms of each agreement with a covered 
        entity for the award of Federal financial assistance under this 
        section prohibitions with respect to a project relating to the 
        procurement, installation, or use of ineligible equipment.
            ``(2) Waiver.--The Secretary may waive the prohibitions 
        under paragraph (1) if--
                    ``(A) the ineligible equipment to be purchased by 
                the applicable covered entity is not produced in the 
                United States or allied or partner countries in 
                sufficient and reasonably available quantities or of a 
                satisfactory quality to support established or expected 
                production capabilities; or
                    ``(B)(i) the use of the ineligible equipment 
                complies with the requirements set forth in the Export 
                Administration Regulations (as such term is defined in 
                section 1742 of the Export Control Reform Act of 2018 
                (50 U.S.C. 4801)); and
                    ``(ii) the Secretary, in consultation with the 
                Director of National Intelligence or the Secretary of 
                Defense, determines such waiver is in the national 
                security interest of the United States.
            ``(3) Foreign entities of concern.--Nothing in this 
        subsection may be construed to waive the application of section 
        9907.''.
    (c) Conforming Amendments.--
            (1) Internal revenue code of 1986.--The Internal Revenue 
        Code of 1986 is amended--
                    (A) in paragraph (1) of section 48D(c), by striking 
                ``section 9901(6) of the William M. (Mac) Thornberry 
                National Defense Authorization Act for Fiscal Year 
                2021'' and inserting ``section 9901 of the William M. 
                (Mac) Thornberry National Defense Authorization Act for 
                Fiscal Year 2021 (15 U.S.C. 4651)''; and
                    (B) in clause (i) of section 50(a)(6)(D), by 
                striking ``section 9901(7) of the William M. (Mac) 
                Thornberry National Defense Authorization Act for 
                Fiscal Year 2021'' and inserting ``section 9901 of the 
                William M. (Mac) Thornberry National Defense 
                Authorization Act for Fiscal Year 2021 (15 U.S.C. 
                4651)''.
            (2) NDAA.--Paragraph (5) of section 5949(j) of division E 
        of James M. Inhofe National Defense Authorization Act for 
        Fiscal Year 2023 (41 U.S.C. 4713 note; Public Law 117-263) is 
        amended by striking ``paragraph (7) of section 9901 of the 
        William M. (Mac) Thornberry National Defense Authorization Act 
        for Fiscal Year 2021 (15 U.S.C. 4651), as added by section 
        103(a)(4) of the CHIPS Act of 2022 (division A of Public Law 
        117-167)'' and inserting ``section 9901 of the William M. (Mac) 
        Thornberry National Defense Authorization Act for Fiscal Year 
        2021 (15 U.S.C. 4651)''.
                                 <all>
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