Sponsors (11)
The bill reduces national-security supply-chain risks by banning certain foreign-controlled fabrication equipment for grant recipients and clarifies prohibited tools, but does so at the cost of higher procurement costs, potential equipment shortages, and added compliance burden for recipients and the Commerce Department.
State and local governments and small semiconductor grant recipients are prevented from buying or installing finished fabrication equipment from designated foreign 'entities of concern' for 10 years, reducing risk that adversary-controlled suppliers compromise the U.S. semiconductor supply chain.
Covered entities and small-business grant recipients get clearer rules on which finished fabrication tools (e.g., lithography, etch, deposition, inspection) are ineligible, lowering regulatory uncertainty and making compliance and procurement decisions more predictable.
Covered grant recipients and some state partners can access narrow, well-defined waivers to acquire necessary equipment when domestic or allied options are unavailable or inadequate, reducing the chance of project delays or wasted federal funds.
Small businesses and state/local grant recipients may face higher costs and slower project timelines because required non-foreign-of-concern finished tools can be scarcer or more expensive than restricted alternatives.
Covered entities and small-business recipients could lose access to refurbished equipment if refurbishment by a 'foreign entity of concern' disqualifies otherwise usable machines, increasing replacement costs and capital expenditures.
Awardees and the Commerce Department will incur additional administrative and compliance burdens to trace equipment origin and refurbishment history, increasing paperwork, oversight costs, and potential delays in grant execution.
Based on analysis of 2 sections of legislative text.
Requires 10-year prohibitions in certain Commerce award agreements on procurement/use of finished semiconductor equipment made or refurbished by foreign entities of concern, with three narrow waiver paths.
Official title: To prohibit purchases of certain semiconductor manufacturing equipment from foreign entities of concern or subsidiaries of foreign entities of concern, and for other purposes.
Introduced November 20, 2025 by Zoe Lofgren · Last progress November 20, 2025
Requires recipients of certain Commerce Department awards to agree to 10-year prohibitions on procuring, installing, or using finished semiconductor manufacturing equipment made, assembled, or refurbished by specified “foreign entities of concern,” while defining what counts as "completed, fully assembled" equipment and listing categories of covered equipment. It creates three narrow waiver paths for supply shortfalls, refurbishment edge cases, and validated national-security/EAR-compliant exceptions. The measure adds definitions to the existing Commerce export-control/assistance statute and amends award agreement conditions (with a technical renumbering). It does not appropriate funds or create new programs; it conditions certain grant/award agreements administered under existing Commerce statutory authorities on equipment restrictions meant to protect chip supply chain integrity and national security.