S. 3301 — Chip EQUIP Act

This section amends the CHIPS Act (15 U.S.C. 4651 et seq.) by (1) defining "completed, fully assembled" semiconductor manufacturing equipment as ready-to-use or ready-to-install equipment with all (or substantially all) necessary parts, chambers, subsystems, and subcomponents; and (2) defining "ineligible semiconductor manufacturing equipment" as completed, fully assembled equipment manufactured, assembled, or refurbished by a foreign entity of concern (or subsidiary thereof) for semiconductor fabrication, assembly, testing, advanced packaging, production, or R&D—specifically including deposition, etching, lithography, and other listed equipment types but excluding any parts, chambers, subsystems, or subcomponents. The section further prohibits recipients of CHIPS Act financial assistance (under secs. 9902 or 9906) from procuring, installing, or using ineligible equipment for 10 years from the agreement date, subject to waivers if the equipment is unavailable domestically or from allies in sufficient quantity/quality, was refurbished (but not originally made) by a foreign entity of concern, or use complies with Export Administration Regulations and serves the national security interest (as determined with the Director of National Intelligence or Secretary of Defense). (Thus, the prohibition supplements existing restrictions on foreign entities of concern under sec. 9907.)