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Chip Equip Act Would Bar Chinese Chipmaking Machinery for Subsidy Recipients

A bipartisan bill has been introduced to prevent companies that receive Chips Act funding from purchasing tools and equipment made by Chinese firms. Some of the Chips Act funding is aimed at reshoring legacy chip production, and China makes equipment to make those less-sophisticated chips. Most advanced chipmaking machinery is made in the U.S., Japan or the Netherlands.

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Sens. Mark Kelly, D-Ariz., and Marsha Blackburn, R-Tenn., and Reps. Frank Lucas, R-Okla., and Zoe Lofgren, D-Calif., introduced the Chip Equipment Quality, Usefulness and Integrity Protection Act of 2024, (Chip Equip Act). Lucas and Lofgren are the chair and ranking member, respectively, of the House Committee on Science, Space and Technology.

“As the United States revitalizes its domestic semiconductor manufacturing industry, we must do everything in our power to stop China and other foreign entities of concern from compromising our microchip manufacturing facilities,” Kelly said in a news release announcing the bill.

The bill "will strengthen our competitiveness, protect us from intellectual property theft, and ensure taxpayer dollars are being used effectively," Lucas said.