New Bipartisan Bill Seeks Decade-Long Ban on Chinese Equipment for CHIPS Grant Recipients

A bipartisan group of U.S. lawmakers introduced a bill on Thursday that would bar CHIPS Act grant recipients from purchasing Chinese chipmaking equipment for 10 years, Reuters reported Nov. 20.

The proposal targets a wide range of semiconductor manufacturing tools, from advanced lithography machines produced by firms such as ASML to equipment used to cut and process silicon wafers. Representatives Jay Obernolte, a Republican, and Zoe Lofgren, a Democrat, introduced the bill in the House. In the Senate, Democrat Mark Kelly and Republican Marsha Blackburn plan to introduce a companion bill in December.

The CHIPS Act, passed in 2022, set aside $39 billion to support new chip factories and expansions of existing facilities. Companies including Intel, TSMC, and Samsung Electronics have received funding under the law. Intel’s grant was later converted into a U.S. equity stake.

According to background material from the lawmakers, China has invested more than 40 billion dollars in semiconductor manufacturing equipment, and its share of the global market has increased. At the same time, U.S. manufacturers of chipmaking tools have expressed concern that export restrictions to China could reduce sales and slow investment in research and development. The use of CHIPS Act funds to buy Chinese equipment has added to those concerns.

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