Chip EQUIP Act

The "Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025," or the Chip EQUIP Act , amends existing law to restrict the use of certain semiconductor manufacturing equipment. Specifically, it prohibits recipients of federal financial assistance for semiconductor projects from procuring, installing, or using "ineligible semiconductor manufacturing equipment." This ineligible equipment is defined as completed, fully assembled equipment manufactured, assembled, or refurbished by a foreign entity of concern or its subsidiary, covering various types such as deposition, etching, and lithography equipment. These prohibitions are effective for 10 years from the date an agreement for federal assistance is signed. However, the Secretary may grant waivers under specific circumstances. Waivers can be issued if the equipment is not produced in sufficient quantities or quality by the United States or an allied or partner country , or if the equipment was refurbished by a foreign entity of concern but not originally manufactured by one. Additionally, a waiver may be granted if the use complies with export regulations and is determined to be in the national security interest of the United States.