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