Chip EQUIP Act of 2024

This bill prohibits companies that receive U.S. semiconductor-related financial assistance from buying certain semiconductor manufacturing equipment from foreign entities of concern or their subsidiaries.

Sec. 2, Purchases of semiconductor manufacturing equipment: The bill adds a definition for 'completed, fully assembled' equipment and a new term 'ineligible equipment,' which means fully assembled semiconductor manufacturing equipment made by a foreign entity of concern or its subsidiary, used in semiconductor fabrication, assembly, testing, packaging, production, or R&D. It lists examples like deposition, etching, lithography, inspection, wafer slicing, wafer dicing, wire bonders, ion implantation, chemical mechanical polishing, and diffusion or oxidation furnaces, but excludes parts or subcomponents that enable or are part of such equipment. The bill also adds a new subsection to existing law requiring the Secretary to include prohibitions in each financial assistance agreement against procuring, installing, or using ineligible equipment. The Secretary may waive these prohibitions if the equipment is not available in sufficient quantity or quality from the U.S. or an allied country, or if the equipment complies with export regulations and the Secretary, with intelligence or defense consultation, determines the waiver is in the national security interest. The waiver does not affect other restrictions on foreign entities of concern.