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New Rules for Chip Makers: Banning Equipment Purchases from Foreign Entities of Concern.

This law prohibits companies receiving federal subsidies for semiconductor manufacturing from buying essential, fully assembled chip-making machinery from entities linked to specific foreign countries deemed a national security risk. The goal is to secure the US technology supply chain and reduce reliance on potentially compromised foreign equipment. While directly impacting corporations, this measure aims to ensure the integrity and security of the technology that powers everyday electronics and infrastructure.
Key points
Companies receiving government grants for chip production are barred from purchasing finished manufacturing equipment from foreign entities of concern.
The ban covers critical machinery used in fabrication, such as etching, lithography, and inspection tools.
Waivers are possible if the necessary equipment is unavailable in sufficient quantity or quality from the US or allied nations, or if required for national security reasons.
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Additional Information
Print number: 118_S_4585
Sponsor: Sen. Kelly, Mark [D-AZ]
Process start date: 2024-06-18