S.Amdt. 6375

This amendment, known as the Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2026 (or the Chip EQUIP Act), aims to restrict the use of federal funds for certain semiconductor manufacturing equipment.

The amendment adds the following to the bill:

• New Definitions: It defines completed, fully assembled equipment as being ready-to-use or ready-to-install and ready for direct purchase from an entity. It defines ineligible semiconductor manufacturing equipment as completed equipment manufactured, assembled, or refurbished by a foreign entity of concern (or its subsidiaries/affiliates) used for semiconductor research, production, or fabrication. This includes specific items like etching, lithography, and deposition equipment.

• Funding Restrictions: It requires the Secretary to include prohibitions in agreements for federal financial assistance regarding the procurement, installation, or use of this ineligible equipment. These prohibitions are effective for 10 years from the date the agreement is signed.

• Waivers and Exceptions: The Secretary can waive these prohibitions if:

• The equipment is not available in satisfactory quality or quantity from the U.S. or an allied/partner country.

• The equipment was manufactured by a non-foreign entity of concern but was refurbished by one.

• The use complies with Export Administration Regulations and the Secretary determines it is in the national security interest of the U.S. after consulting with the Secretary of Defense or the Director of National Intelligence.

• Prior Equipment: The prohibitions do not apply to equipment installed before the act's enactment or equipment allowed under agreements signed before the act's enactment.