Chip EQUIP Act

The Chip EQUIP Act prohibits federal funds from being used to buy or install "ineligible equipment" - defined as completed semiconductor manufacturing tools (like lithography machines, etching equipment, or inspection systems) made by foreign entities of concern (e.g., certain foreign companies). It directly affects companies receiving federal assistance for semiconductor manufacturing, requiring them to avoid such equipment unless a waiver applies. Waivers are allowed only if the equipment isn’t available domestically or from allied countries, or if it complies with export rules and national security assessments. The law aims to restrict reliance on foreign-sourced chip-making technology while allowing limited exceptions.