S.Amdt. 6655

This amendment, known as the Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2026 (or the Chip EQUIP Act), aims to stop the use of federal money for certain semiconductor manufacturing equipment. It proposes adding new rules to the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021.

The amendment seeks to change the bill by adding the following:

• Definitions: It defines completed, fully assembled equipment as being ready-to-use or ready-to-install and ready for direct purchase. It defines ineligible semiconductor manufacturing equipment as completed equipment manufactured, assembled, or refurbished by a foreign entity of concern or its affiliates. This includes various types of equipment such as:

  • Deposition, etching, and lithography equipment.
  • Inspection, measuring, and test equipment.
  • Wafer slicing and dicing equipment.
  • Wire bonders and ion implantation equipment.
  • Chemical mechanical polishing and thermal processing equipment.
  • Diffusion or oxidation furnaces and automated material handling systems.

• Restrictions on Funds: The Secretary must include prohibitions in agreements for federal financial assistance against the procurement, installation, or use of this ineligible equipment for 10 years after the agreement is signed.

• Waivers: The Secretary can waive these rules if:

  • The equipment is not available in satisfactory quality or quantity from the United States or an allied or partner country.
  • The equipment was made 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 United States after consulting with the Secretary of Defense or the Director of National Intelligence.

• Existing Agreements: These rules do not apply to equipment installed before the Act's enactment or equipment allowed under agreements signed before the Act's enactment.