H.R. 6207 — Chip EQUIP Act

This section adds to the definitions in the CHIPS for America Act (1) "completed, fully assembled" semiconductor manufacturing equipment (i.e., ready-to-use or ready-to-install equipment with all or substantially all necessary parts, chambers, subsystems, and subcomponents); and (2) "ineligible semiconductor manufacturing equipment" (i.e., such completed equipment manufactured, assembled, or refurbished by a foreign entity of concern, including e.g., lithography and etching equipment, but excluding parts, chambers, subsystems, or subcomponents). It further requires the Secretary of Commerce to prohibit, in agreements for federal financial assistance under the CHIPS Act (secs. 9902, 9906), the procurement, installation, or use of ineligible equipment for covered semiconductor projects for 10 years from the agreement date, subject to waivers if (1) such equipment is unavailable in sufficient quantity or quality from the United States or allies/partners; (2) it was not manufactured/assembled (only refurbished) by a foreign entity of concern; or (3) it complies with Export Administration Regulations and serves the national security interest, as determined in consultation with the Director of National Intelligence or Secretary of Defense. (Thus, CHIPS Act funding recipients—e.g., for domestic semiconductor fabrication facilities—are restricted from using adversary-sourced equipment, without waiving separate foreign entity of concern restrictions under sec. 9907.)