Chip makers funded by U.S. face 10-year ban on foreign equipment
H.R. 6207 — Chip EQUIP Act · Filed by Zoe Lofgren (D-CA) · 11 cosponsors · Introduced Nov 20, 2025 · Markup held
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What it does
This bill amends federal semiconductor funding rules to prohibit U.S. companies receiving federal grants or loans from purchasing advanced semiconductor manufacturing equipment made, assembled, or refurbished by foreign entities deemed a national security concern (or their subsidiaries). The ban applies to equipment like chip-making machines, etching tools, and testing systems, and lasts 10 years. The Secretary of Commerce can waive the ban if equivalent U.S. or allied equipment isn't available, or if national security requires it.
Why we flagged it
The bill's operative mechanism is a procurement restriction tied to federal funding, designed to favor domestic and allied semiconductor equipment suppliers over foreign competitors deemed security risks. It is fundamentally a supply-chain security measure with protectionist economic effects.
What the text implies
- The 10-year ban creates a long-term captive market for U.S. and allied equipment makers, potentially reducing price competition and innovation incentives for federally-funded chip manufacturers.
- The waiver mechanism (insufficient U.S. supply, national security interest) is discretionary and opaque; Commerce Secretary and DNI determinations are not subject to public notice-and-comment, creating potential for inconsistent or politically-influenced enforcement.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. semiconductor equipment manufacturers; Allied-country semiconductor equipment suppliers; Domestic chip fabricators receiving federal funding