I 
118TH CONGRESS 
2D SESSION 
H. R. 8826 
To prohibit covered entities that receive financial assistance relating to semi-
conductors from purchasing certain semiconductor manufacturing equip-
ment 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 con-
cerned 
A BILL 
To prohibit covered entities that receive financial assistance 
relating to semiconductors from purchasing certain semi-
conductor 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 Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
06:35 Aug 07, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H8826.IH
H8826
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Chip Equipment Qual-
ity, Usefulness, and Integrity Protection Act of 2024’’ or 
the ‘‘Chip EQUIP Act’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—Section 9901 of the William M. 
(Mac) Thornberry National Defense Authorization Act for 
Fiscal Year 2021 (15 U.S.C. 4651) is amended— 
(1) by redesignating paragraphs (2), (3), (4), 
(5), (6), (7), (8), (9), (10), (11), (12), and (13) as 
paragraphs (3), (4), (6), (7), (8), (9), (10), (11), 
(12), (13), (14), and (15), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) The term ‘completed, fully assembled’ 
means the state in which all (or substantially all) 
necessary parts, chambers, subsystems, and sub-
components have been put together, resulting in a 
ready-to-use or ready-to-install item to be directly 
purchased from an entity.’’; 
(3) in subparagraph (A) of paragraph (4), as so 
redesignated, by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraph (3)’’; and 
(4) by inserting after such redesignated para-
graph (4) the following new paragraph: 
‘‘(5) The term ‘ineligible equipment’— 
VerDate Sep 11 2014 
06:35 Aug 07, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H8826.IH
H8826
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(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 equip-
ment; 
‘‘(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.’’. 
VerDate Sep 11 2014 
06:35 Aug 07, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H8826.IH
H8826
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(b) INELIGIBLE USE OF FUNDS.—Section 9902 of 
the William M. (Mac) Thornberry National Defense Au-
thorization Act for Fiscal Year 2021 (15 U.S.C. 4652) 
is amended by adding at the end the following new sub-
section: 
‘‘(j) INELIGIBLE USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall include in the terms of each 
agreement with a covered entity for the award of 
Federal financial assistance under this section prohi-
bitions with respect to a project relating to the pro-
curement, installation, or use of ineligible equip-
ment. 
‘‘(2) WAIVER.—The Secretary may waive the 
prohibitions under paragraph (1) if— 
‘‘(A) the ineligible equipment to be pur-
chased by the applicable covered entity is not 
produced in the United States or allied or part-
ner countries in sufficient and reasonably avail-
able quantities or of a satisfactory quality to 
support established or expected production ca-
pabilities; or 
‘‘(B)(i) the use of the ineligible equipment 
complies with the requirements set forth in the 
Export Administration Regulations (as such 
VerDate Sep 11 2014 
06:35 Aug 07, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H8826.IH
H8826
kjohnson on DSK7ZCZBW3PROD with $$_JOB
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 Sec-
retary of Defense, determines such waiver is in 
the national security interest of the United 
States. 
‘‘(3) FOREIGN ENTITIES OF CONCERN.—Noth-
ing 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 Authoriza-
tion Act for Fiscal Year 2021’’ and inserting 
‘‘section 9901 of the William M. (Mac) Thorn-
berry 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 Authoriza-
tion Act for Fiscal Year 2021’’ and inserting 
VerDate Sep 11 2014 
06:35 Aug 07, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H8826.IH
H8826
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘section 9901 of the William M. (Mac) Thorn-
berry National Defense Authorization Act for 
Fiscal Year 2021 (15 U.S.C. 4651)’’. 
(2) NDAA.—Paragraph (5) of section 5949(j) 
of division E of James M. Inhofe National Defense 
Authorization Act for Fiscal Year 2023 (41 U.S.C. 
4713 note; Public Law 117–263) is amended by 
striking ‘‘paragraph (7) of section 9901 of the Wil-
liam M. (Mac) Thornberry National Defense Author-
ization Act for Fiscal Year 2021 (15 U.S.C. 4651), 
as added by section 103(a)(4) of the CHIPS Act of 
2022 (division A of Public Law 117–167)’’ and in-
serting ‘‘section 9901 of the William M. (Mac) 
Thornberry National Defense Authorization Act for 
Fiscal Year 2021 (15 U.S.C. 4651)’’. 
Æ 
VerDate Sep 11 2014 
06:35 Aug 07, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H8826.IH
H8826
kjohnson on DSK7ZCZBW3PROD with $$_JOB