A bipartisan group of House and Senate lawmakers Introduced A bill that would prohibit CHIPS and Science Act fundraisers from using their funds to buy equipment or specialized manufacturing tools from companies based in China or other countries considered to be U.S. adversaries, including Russia, North Korea and Iran.
of Chip Device Quality, Serviceability, and Integrity Protection Act of 2024 The CHIP EQUIP Act was introduced in the House of Representatives by Reps. Zoe Lofgren (D-Calif.) and Frank Lucas (R-Okla.) and in the Senate by Senators Mark Kelly (D-Ariz.) and Marsha Blackburn (R-Tenn.).
President Biden Signed The Commerce Department enacted the CHIPS and SCIENCE Act in August 2022, providing up to $52 billion in funding to incentivize semiconductor manufacturers to establish new manufacturing bases in the U.S. Since then, the Commerce Department has announced preliminary CHIPS and SCIENCE Act funding agreements with multiple companies for more than $26 billion, most of which will be used to help create new semiconductor manufacturing capacity in the United States.
“While China currently lags behind the United States in the manufacture of advanced semiconductor tools, it is investing in the development of its own advanced tools and is making continuing efforts to expand production capacity for ‘legacy’ tools that are not subject to export controls like those of the United States. Imposed “in 2022,” according to a statement from the senator’s office when introducing the bill on June 18.
“If left unchecked, Chinese government subsidies and aggressive marketing tactics could result in outdated Chinese-made tooling being placed in U.S. and allied manufacturing facilities in the future,” the offices said.
“Having a strong domestic semiconductor industry is critical to our nation’s economic success and national security. The Chinese Communist Party controls these markets, and it is urgent that we catch up.” Said Senator Lucas.
“The CHIP Equip Act picks up where CHIPS and SCIENCE left off and prohibits CHIPS-funded projects from purchasing Chinese semiconductor manufacturing equipment and tools. This bill will strengthen our nation’s competitiveness, protect against intellectual property theft, and ensure taxpayer dollars are spent effectively,” the congressman added.
“As the United States reinvigorates its domestic semiconductor manufacturing industry, we must do everything in our power to prevent China and other foreign entities of concern from endangering American microchip manufacturing facilities.” Said Senator Kerry: “The CHIP EQUIP Act will strengthen our national security and ensure that America’s advanced semiconductor tools remain among the best in the world.”
