I 

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. 

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


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•HR 8826 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Chip Equipment Qual3 ity, Usefulness, and Integrity Protection Act of 2024’’ or 

4 the ‘‘Chip EQUIP Act’’. 

5 SEC. 2. DEFINITIONS. 

6 (a) IN GENERAL.—Section 9901 of the William M. 

7 (Mac) Thornberry National Defense Authorization Act for 

8 Fiscal Year 2021 (15 U.S.C. 4651) is amended— 

9 (1) by redesignating paragraphs (2), (3), (4), 

10 (5), (6), (7), (8), (9), (10), (11), (12), and (13) as 

11 paragraphs (3), (4), (6), (7), (8), (9), (10), (11), 

12 (12), (13), (14), and (15), respectively; 

13 (2) by inserting after paragraph (1) the fol14 lowing new paragraph: 

15 ‘‘(2) The term ‘completed, fully assembled’ 

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

17 necessary parts, chambers, subsystems, and sub18 components have been put together, resulting in a 

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

20 purchased from an entity.’’; 

21 (3) in subparagraph (A) of paragraph (4), as so 

22 redesignated, by striking ‘‘paragraph (2)’’ and in23 serting ‘‘paragraph (3)’’; and 

24 (4) by inserting after such redesignated para25 graph (4) the following new paragraph: 

26 ‘‘(5) The term ‘ineligible equipment’— 


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•HR 8826 IH

1 ‘‘(A) means completed, fully assembled 

2 semiconductor manufacturing equipment that is 

3 manufactured or assembled by a foreign entity 

4 of concern or subsidiary of an entity of concern 

5 and used in the fabrication, assembly, testing, 

6 advanced packaging, production, or research 

7 and development of semiconductors; 

8 ‘‘(B) includes— 

9 ‘‘(i) deposition equipment; 

10 ‘‘(ii) etching equipment; 

11 ‘‘(iii) lithography equipment; 

12 ‘‘(iv) inspection and measuring equip13 ment; 

14 ‘‘(v) wafer slicing equipment; 

15 ‘‘(vi) wafer dicing equipment; 

16 ‘‘(vii) wire bonders; 

17 ‘‘(viii) ion implantation equipment; 

18 ‘‘(ix) chemical mechanical polishing; 

19 and 

20 ‘‘(x) diffusion or oxidation furnaces; 

21 and 

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

23 subsystem, or subcomponent that enables or is 

24 incorporated into such equipment.’’. 


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•HR 8826 IH

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

2 the William M. (Mac) Thornberry National Defense Au3 thorization Act for Fiscal Year 2021 (15 U.S.C. 4652) 

4 is amended by adding at the end the following new sub5 section: 

6 ‘‘(j) INELIGIBLE USE OF FUNDS.— 

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

8 the Secretary shall include in the terms of each 

9 agreement with a covered entity for the award of 

10 Federal financial assistance under this section prohi11 bitions with respect to a project relating to the pro12 curement, installation, or use of ineligible equip13 ment. 

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

15 prohibitions under paragraph (1) if— 

16 ‘‘(A) the ineligible equipment to be pur17 chased by the applicable covered entity is not 

18 produced in the United States or allied or part19 ner countries in sufficient and reasonably avail20 able quantities or of a satisfactory quality to 

21 support established or expected production ca22 pabilities; or 

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

24 complies with the requirements set forth in the 

25 Export Administration Regulations (as such 


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•HR 8826 IH

1 term is defined in section 1742 of the Export 

2 Control Reform Act of 2018 (50 U.S.C. 4801)); 

3 and 

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

5 Director of National Intelligence or the Sec6 retary of Defense, determines such waiver is in 

7 the national security interest of the United 

8 States. 

9 ‘‘(3) FOREIGN ENTITIES OF CONCERN.—Noth10 ing in this subsection may be construed to waive the 

11 application of section 9907.’’. 

12 (c) CONFORMING AMENDMENTS.— 

13 (1) INTERNAL REVENUE CODE OF 1986.—The 

14 Internal Revenue Code of 1986 is amended— 

15 (A) in paragraph (1) of section 48D(c), by 

16 striking ‘‘section 9901(6) of the William M. 

17 (Mac) Thornberry National Defense Authoriza18 tion Act for Fiscal Year 2021’’ and inserting 

19 ‘‘section 9901 of the William M. (Mac) Thorn20 berry National Defense Authorization Act for 

21 Fiscal Year 2021 (15 U.S.C. 4651)’’; and 

22 (B) in clause (i) of section 50(a)(6)(D), by 

23 striking ‘‘section 9901(7) of the William M. 

24 (Mac) Thornberry National Defense Authoriza25 tion Act for Fiscal Year 2021’’ and inserting 


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1 ‘‘section 9901 of the William M. (Mac) Thorn2 berry National Defense Authorization Act for 

3 Fiscal Year 2021 (15 U.S.C. 4651)’’. 

4 (2) NDAA.—Paragraph (5) of section 5949(j) 

5 of division E of James M. Inhofe National Defense 

6 Authorization Act for Fiscal Year 2023 (41 U.S.C. 

7 4713 note; Public Law 117–263) is amended by 

8 striking ‘‘paragraph (7) of section 9901 of the Wil9 liam M. (Mac) Thornberry National Defense Author10 ization Act for Fiscal Year 2021 (15 U.S.C. 4651), 

11 as added by section 103(a)(4) of the CHIPS Act of 

12 2022 (division A of Public Law 117–167)’’ and in13 serting ‘‘section 9901 of the William M. (Mac) 

14 Thornberry National Defense Authorization Act for 

15 Fiscal Year 2021 (15 U.S.C. 4651)’’. 

Æ 


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