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Banning Federal Funds for Chip Manufacturing Equipment from Foreign Entities.

This bill aims to enhance US national security by protecting technology supply chains. It introduces a 10-year prohibition on using federal financial assistance (such as funds supporting chip production) to purchase completed semiconductor manufacturing equipment if it was made or refurbished by designated foreign entities of concern. This measure requires companies receiving public aid to rely on domestic or allied equipment, thereby strengthening the American technological base and supply chain security.
Key points
Companies receiving federal grants for chip production are banned for 10 years from buying key, fully assembled manufacturing equipment from specific foreign entities of concern.
The prohibition covers a wide range of machinery used for semiconductor fabrication, testing, and packaging, including lithography and etching equipment.
Waivers are possible if the necessary equipment is unavailable from US or allied sources in sufficient quantity or quality, or if required for national security interests.
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Status: Introduced
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Additional Information
Print number: 119_S_3301
Sponsor: Sen. Kelly, Mark [D-AZ]
Process start date: 2025-12-02