In an effort to bolster American sovereignty in semiconductor manufacturing, a new bipartisan bill was tabled by Senators Mark Kelly of Arizona and Marsha Blackburn of Tennessee. This Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2024, or the Chip EQUIP Act, aims to ensure that companies benefiting from the federal CHIPS Act funding do not turn to make purchases of specialized tools from entities linked to foreign adversaries. The bill was introduced in tandem with a companion measure in the House by Representatives Zoe Lofgren and Jay Obernolte.
Senator Kelly, instrumental in authoring the CHIPS and Science Act—which included a staggering $52 billion to reignite semiconductor production stateside—expressed his concerns to his Senate office. "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," he cited the potential threat posed by dependence on foreign manufacturing tools.
The Chip EQUIP Act arrives amidst a heightened global race to secure semiconductor supremacy. With specific emphasis on Chinese efforts, the bill responds to growing investments by the People's Republic of China in its national semiconductor industry, including a recent $47.5 billion injection in May 2024 for chip manufacturing equipment. Additionally, Huawei, a Chinese giant, has been steadily gaining on its competition, announcing plans for a new research and development center focused on semiconductor technologies last year.
Senator Blackburn mirrored Kelly's urgency, saying, "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." She warned that the integrity of the semiconductor supply chain must not be compromised by the use of tools from these nations. Her words, quoted from Kelly’s Senate office press release, carry a tone of urgency that underpins the rationale for the Chip EQUIP Act.
The proposed legislation would amend the former CHIPS and Science Act to explicitly forbid the use of adversarial-made tools in projects funded by it. If enacted, the bill could shift the balance of power away from potential foreign domination in this critical technological field and further secure the future of American innovation and national security.
