Sponsors (11)
The bill improves semiconductor supply-chain security and reduces regulatory ambiguity by banning certain foreign-made finished fabrication tools for grant recipients, but it raises equipment costs, limits access to some refurbished machines, and increases compliance burdens for awardees and administrators.
State and local governments and small semiconductor firms: recipients of federal semiconductor grants are prohibited for 10 years from buying or installing finished fabrication equipment from designated foreign 'entities of concern', reducing supply-chain risk from adversary-controlled suppliers.
Covered entities and vendors: the bill clarifies which finished fabrication tools are 'ineligible' (e.g., lithography, etch, deposition, inspection), giving recipients clearer compliance rules and lowering regulatory uncertainty.
Covered entities and state governments: the bill permits narrow waivers when domestic or allied equipment is unavailable or inadequate, preventing project delays and wasted grant funds.
Small semiconductor firms and state/local grant recipients: the 10-year ban and restrictions on equipment sourced from foreign 'entities of concern' can raise costs and slow project timelines by forcing purchase of scarcer or more expensive non‑restricted equipment, including limiting access to refurbished machines.
Covered entities and small firms: the prohibition on equipment touched by foreign 'entities of concern' could disqualify otherwise usable refurbished machines, increasing replacement costs and capital expenditure needs.
Awardees and the Commerce Department: enforcing origin and refurbishment tracing adds administrative and compliance burdens to grant recipients and agency staff.
Based on analysis of 2 sections of legislative text.
Requires Commerce to include 10-year prohibitions in certain federal awards blocking use of finished semiconductor equipment made or refurbished by designated foreign entities of concern, with narrow waivers.
Adds two definitions for finished semiconductor manufacturing equipment and creates a new rule for certain federal awards that bans procurement, installation, or use of fully assembled semiconductor equipment made or refurbished by specified foreign ‘‘entities of concern’’ for 10 years. The Commerce Secretary must include these 10-year prohibitions in award agreements under the specified grant/award authorities, while also allowing three narrow waiver paths for supply insufficiency/quality, refurbishment-of-original-non-concern equipment, or export-authorized equipment with an additional national-security waiver in consultation with intelligence or defense officials.
Introduced November 20, 2025 by Zoe Lofgren · Last progress November 20, 2025