New Bipartisan Plan
Senators Mark Kelly (D-AZ) and Marsha Blackburn (R-TN) have introduced a major bipartisan proposal known as the Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2024, commonly called the Chip EQUIP Act. This legislation aims to ensure that companies receiving CHIPS Act funds cannot purchase specialized semiconductor manufacturing tools from firms controlled by the Chinese government or any other nation considered a security threat. A similar companion bill has also been introduced in the House by Representatives Zoe Lofgren (D-CA-18) and Jay Obernolte (R-CA-23).
Senator Kelly, a key architect of the original CHIPS and Science Act, highlighted the progress the United States has made in rebuilding its microchip industry. However, he warned that relying on Chinese-made equipment in American facilities increases the risks of supply-chain interference and possible national security breaches. According to him, this new legislation is designed to close those vulnerabilities and keep U.S. semiconductor growth on solid ground.
Senator Blackburn echoed this concern, stressing that America must keep critical manufacturing tools out of the hands of foreign adversaries such as China, Russia, Iran, and North Korea. She stated that the Chip EQUIP Act will ensure that federally funded labs use only trusted and secure equipment.
Representative Lofgren explained that the CHIPS and Science Act was originally crafted to revive domestic semiconductor production after years of offshoring. With other countries rapidly expanding their own chip capabilities, she emphasized the importance of protecting U.S. investments and preventing American resources from supporting rival technological advances.
Representative Obernolte underscored that semiconductor technology is central to both economic strength and national defense. He noted that the Chip EQUIP Act reinforces supply-chain security by requiring high-integrity tools in U.S. chip fabrication facilities.
Background
Most advanced chip-making equipment is still produced in the United States or allied countries like Japan and the Netherlands, but China is quickly increasing its presence in the sector. A $47.5 billion investment announced in May 2024 aims to expand China’s chip-equipment manufacturing. Additionally, Huawei is developing a new research center to compete directly with leading U.S., Japanese, and Dutch equipment makers.
The Chip EQUIP Act strengthens the CHIPS and Science Act by clearly prohibiting CHIPS-funded companies from purchasing semiconductor equipment from entities owned or influenced by nations considered adversarial, including China, Russia, Iran, and North Korea.
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