- Record: Senate Floor
- Section type: Amendments
- Chamber: Senate
- Date: June 24, 2026
- Congress: 119th Congress
- Why this source matters: This section came from the Senate floor portion of the record.
SA 6375. Mr. KELLY (for himself and Mrs. Blackburn) submitted an amendment intended to be proposed by him to the bill S. 4784, to authorize appropriations for fiscal year 2027 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. PURCHASES OF SEMICONDUCTOR MANUFACTURING EQUIPMENT.
(a) Short Title.—This section may be cited as the “Chip
Equipment Quality, Usefulness, and Integrity Protection Act
of 2026” or the “Chip EQUIP Act”.
(b) Definitions.—Section 9901 of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (15 U.S.C. 4651) is amended by adding at the end the
following:
“(14) The term `completed, fully assembled', with respect
to semiconductor manufacturing equipment, means the state in
which all (or substantially all) necessary parts, chambers,
subsystems, and subcomponents have been put together,
resulting in such equipment that is—
“(A) ready-to-use or ready-to-install; and
“(B) ready to be purchased directly from an entity.
“(15) The term `ineligible semiconductor manufacturing
equipment'—
“(A) means completed, fully assembled equipment that is
manufactured, assembled, or refurbished by a foreign entity
of concern, or a subsidiary or affiliate thereof, and
designed for use 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, measuring, and test equipment;
“(v) wafer slicing equipment;
“(vi) wafer dicing equipment;
“(vii) wire bonders;
“(viii) ion implantation equipment;
“(ix) chemical mechanical polishing;
“(x) diffusion or oxidation furnaces;
“(xi) thermal processing equipment; and
“(xii) automated material handling systems; and
“(C) does not include any part, chamber, subsystem, or
subcomponent that enables or is incorporated into such
equipment.”.
(c) Ineligible Use of Funds.—Section 9909 of the William
M. (Mac) Thornberry National Defense Authorization Act for
Fiscal Year 2021 (15 U.S.C. 4659) is amended—
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
“(f) Ineligible Use of Funds.—
“(1) In general.—Subject to paragraphs (2) and (3), the
Secretary shall include in the terms of each agreement with a
covered entity for the award of Federal financial assistance
under section 9902, or with the recipient of an award made
under section 9906, prohibitions with respect to a project
relating to the procurement, installation, or use of
ineligible semiconductor manufacturing equipment, to be
effective for 10 years beginning on the date on which the
agreement is signed.
“(2) Waiver.—The Secretary may waive the prohibitions
referred to in paragraph (1) if—
“(A) the ineligible semiconductor manufacturing equipment
to be purchased by the applicable covered entity is not
produced in the United States or an allied or partner country
in sufficient and reasonably available quantities or of a
satisfactory quality to support established or expected
production capabilities;
“(B) the ineligible semiconductor manufacturing equipment
at issue was manufactured and assembled by an entity that is
not a foreign entity of concern, or a subsidiary or affiliate
thereof, and was refurbished by a foreign entity of concern,
or a subsidiary or affiliate thereof; or
“(C)(i) the use of the ineligible semiconductor
manufacturing 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) Prior waivers.—
“(A) In general.—The prohibitions referred to in
paragraph (1) shall not apply to any ineligible semiconductor
manufacturing equipment that—
“(i) has been installed by the applicable covered entity
prior to the date of enactment of the Chip EQUIP Act; or
“(ii) is allowed to be procured, installed, or used by the
applicable covered entity under the terms of an agreement
that was entered into before the date of enactment of the
Chip EQUIP Act between the Secretary and the covered entity.
“(B) Limitation.—Nothing in clause (ii) of subparagraph
(A) shall be construed to authorize the procurement,
installation, or use of ineligible semiconductor
manufacturing equipment that is not allowed under the terms
of an agreement entered into prior to the date of enactment
of the Chip EQUIP Act.
“(4) Foreign entities of concern.—Nothing in this
subsection may be construed to waive the application of
section 9907.”.