Senators Kelly & Blackburn, Representatives Lofgren & Obernolte Introduce Bipartisan Bill to Cement U.S. as Leader in Microchip Manufacturing
Kelly authored and negotiated the CHIPS and Science Act, which included $52 billion to bring back semiconductor manufacturing to the United States.
Today, Senators Mark Kelly (D-AZ) and Marsha Blackburn (R-TN) introduced the Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2024 (Chip EQUIP Act), bipartisan, bicameral legislation to prevent companies that receive CHIPS Act funding from purchasing specialized manufacturing tools or equipment made by entities owned or controlled by the Chinese government or other foreign entities of concern. A house companion was introduced by Representatives Zoe Lofgren (D-CA-18), Ranking Member of the House Committee on Science, Space, and Technology and Jay Obernolte (R-CA-23), Chairman of the Research and Technology Subcommittee.
“Through the CHIPS and Science Act, we’ve supported historic investments in Arizona and across the country to lead the world again in semiconductor manufacturing. But that progress can be put at risk if companies use Chinese-made tools and equipment in their U.S. facilities, opening the door for our adversaries to disrupt production and gain leverage over our supply chains and national security,” said Senator Kelly, a chief negotiator of the CHIPS and Science Act. “With this bill, we’re taking steps to prevent that and keep this industry strong here at home.”
“The United States must secure its semiconductor supply chains by ensuring American semiconductor companies don’t buy manufacturing tools from foreign adversaries like Communist China, Russia, North Korea, and Iran,” said Senator Blackburn.“The Chip EQUIP Act would prevent U.S. labs that receive CHIPS funding from utilizing manufacturing tools made in adversarial nations.”
“The CHIPS and Science Act made historic investments to surge production of American-made semiconductors and address the supply chain vulnerabilities created by decades of offshoring in the semiconductor industry,” said Rep. Lofgren. “It is no surprise that other nations have taken note of these investments and are working to grow their own domestic capacity. We must continue to put American manufacturing first and strengthen our supply chains to remain ahead of our adversaries, like China. This common-sense bill will ensure CHIPS investments are not used to support our adversaries’ capacity to develop semiconductor manufacturing equipment. I thank my colleagues for partnering with me to protect American leadership in this critical industry.”
“Semiconductor manufacturing underpins both our national security and our long-term economic strength,” said Rep. Obernolte. “The Chip EQUIP Act ensures that the tools used in our fabrication facilities meet the highest standards of reliability and integrity, reinforcing a resilient supply chain. This legislation helps protect America’s technological leadership at a moment when global competition has never been more intense.”
Background:
Today, nearly all the specialized tools and equipment used throughout the semiconductor manufacturing supply chain are made in the U.S. or allied nations like Japan and the Netherlands. However, demand is surging for Chinese-made semiconductor tools and the PRC has made continued investments in its own semiconductor industry. The latest investment in May 2024, worth $47.5 billion, will heavily focus on chip manufacturing equipment. Further, Huawei, a Chinese company, announced last year that it was building a new research and development center to develop capabilities that rival that of U.S., Japanese, and Dutch firms.
This legislation will amend Kelly’s CHIPS and Science Act to clarify that if a company takes funding from this law, projects using such funding can’t purchase specialized semiconductor manufacturing tools made by entities owned or controlled by adversaries such as China, Russia, North Korea, and Iran.
Click here to read the bill text.
