[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S4707-S4708]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2366. Mr. KELLY (for himself and Mrs. Blackburn) submitted an 
amendment intended to be proposed by him to the bill S. 4638, to 
authorize appropriations for fiscal year 2025 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of subtitle H of title X, add the following:

     SEC. 1095. CHIP EQUIP ACT.

       (a) Short Title.--This section may be cited as the ``The 
     Chip Equipment Quality, Usefulness, and Integrity Protection 
     Act of 2024'' or the ``Chip EQUIP Act''.
       (b) Purchases of Semiconductor Manufacturing Equipment.--
       (1) Definitions.--Section 9901 of the William M. (Mac) 
     Thornberry National Defense Authorization Act for Fiscal Year 
     2021 (15 U.S.C. 4651) is amended by inserting after paragraph 
     (13) the following:
       ``(14) The term `completed, fully assembled' means the 
     state in which all (or substantially all) necessary parts, 
     chambers, subsystems, and subcomponents have been put 
     together, resulting in a ready-to-use or ready-to-install 
     item to be directly purchased from an entity.
       ``(15) The term `ineligible equipment'--
       ``(A) means completed, fully assembled semiconductor 
     manufacturing equipment that is manufactured or assembled by 
     a foreign entity of concern or subsidiary of a foreign entity 
     of concern and used in the fabrication, assembly, testing, 
     advanced packaging, production, or research and development 
     of semiconductors;
       ``(B) includes--
       ``(i) deposition equipment;
       ``(ii) etching equipment;
       ``(iii) lithography equipment;
       ``(iv) inspection and measuring equipment;
       ``(v) wafer slicing equipment;
       ``(vi) wafer dicing equipment;
       ``(vii) wire bonders;
       ``(viii) ion implantation equipment;
       ``(ix) chemical mechanical polishing; and
       ``(x) diffusion or oxidation furnaces; and
       ``(C) does not include any part, chamber, subsystem, or 
     subcomponent that enables or is incorporated into such 
     equipment.''.
       (2) Ineligible use of funds.--Section 9902 of the William 
     M. (Mac) Thornberry National Defense Authorization Act for 
     Fiscal Year 2021 (15 U.S.C. 4652) is amended by adding at the 
     end the following:
       ``(j) Ineligible Use of Funds.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall include in the terms of each agreement with a covered 
     entity for the award of Federal financial assistance under 
     this section prohibitions with respect to a project relating 
     to the procurement, installation, or use of ineligible 
     equipment, to be effective for the duration of the agreement.
       ``(2) Waiver.--The Secretary may waive the prohibitions 
     described in paragraph (1) if--
       ``(A) the ineligible equipment to be purchased by the 
     applicable covered entity is not produced in the United 
     States or an allied or partner country in sufficient and 
     reasonably available quantities or of a satisfactory quality 
     to support established or expected production capabilities; 
     or

[[Page S4708]]

       ``(B)(i) the use of the ineligible equipment complies with 
     the requirements set forth in the Export Administration 
     Regulations, as defined in section 1742 of the Export Control 
     Reform Act of 2018 (50 U.S.C. 4801); and
       ``(ii) the Secretary, in consultation with the Director of 
     National Intelligence or the Secretary of Defense, determines 
     the waiver is in the national security interest of the United 
     States.
       ``(3) Foreign entities of concern.--Nothing in this 
     subsection shall be construed to waive the application of 
     section 9907.''.
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