Chip EQUIP Act

HR 8826, the Chip EQUIP Act, prohibits federal financial assistance from being used to procure, install, or operate "ineligible equipment" for semiconductor manufacturing. This equipment is defined as completed, fully assembled semiconductor manufacturing tools made by foreign entities of concern (like certain Chinese companies) or their subsidiaries. The law requires federal agreements to include this ban, with limited waivers possible if the equipment isn't available domestically or meets export controls and national security criteria. It directly affects semiconductor manufacturers receiving federal funds under programs like the CHIPS Act, aiming to protect supply chain security by restricting reliance on foreign-sourced manufacturing equipment.