Sponsors (10)
The bill strengthens national security and supports U.S. semiconductor manufacturing by restricting procurement of foreign‑controlled equipment, but does so at the cost of higher procurement prices, potential project delays, added compliance burdens, and some risk of foreign retaliation.
Tech workers, government contractors, and domestic semiconductor manufacturers will face reduced dependence on equipment from hostile foreign firms and lower risk of espionage or supply‑chain sabotage, strengthening U.S. semiconductor supply‑chain resilience and national security.
U.S. and allied suppliers (and the workers they employ) will see increased demand because federal funding recipients are incentivized to buy domestically or from allies, likely boosting domestic manufacturing jobs and investment in semiconductor tooling.
Small fab operators, government contractors, and other recipients of federal aid may face higher procurement costs or project delays if U.S./allied equipment is scarce or more expensive than foreign alternatives.
Small businesses and tech workers could be hurt if affected foreign firms or governments respond with reciprocal trade measures or political retaliation against U.S. suppliers or exports.
Government contractors and state governments may face increased compliance complexity and legal uncertainty when applying refurbishment exceptions and verifying supply‑chain provenance, raising administrative costs and risk of disputes.
Based on analysis of 2 sections of legislative text.
Conditions federal chipmaking grants to ban for 10 years certain semiconductor equipment made/assembled/refurbished by foreign "entities of concern," with narrow waivers.
Introduced November 20, 2025 by Zoe Lofgren · Last progress November 20, 2025
Amends federal CHIPS-related assistance rules to ban the purchase, installation, or use of certain semiconductor manufacturing equipment made, assembled, or refurbished by a foreign "entity of concern" for 10 years as a condition of receiving federal financial assistance. The law defines covered equipment types (e.g., lithography, etching, deposition, inspection/test, wafer slicing/dicing, wire bonders, ion implantation, chemical mechanical polishing, furnaces/thermal processing, automated material handling) and allows only narrow waivers when domestic/allied supplies are unavailable, for specified refurbished equipment situations, or when equipment complies with export rules and a national-security determination is made in consultation with DNI or the Secretary of Defense—while keeping another specified restriction non-waivable.