[Congressional Record Volume 172, Number 113 (Monday, July 13, 2026)]
[Senate]
[Pages S3886-S3887]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 6655. Mr. KELLY (for himself and Mrs. Blackburn) submitted an 
amendment intended to be proposed by him to the bill S. 4784, to 
authorize appropriations for fiscal year 2027 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 appropriate place, insert the following:

     SEC. __. PURCHASES OF SEMICONDUCTOR MANUFACTURING EQUIPMENT.

       (a) Short Title.--This section may be cited as the ``Chip 
     Equipment Quality, Usefulness, and Integrity Protection Act 
     of 2026'' or the ``Chip EQUIP Act''.
       (b) 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 adding at the end the 
     following:
       ``(14) The term `completed, fully assembled', with respect 
     to semiconductor manufacturing equipment, means the state in 
     which all (or substantially all) necessary parts, chambers, 
     subsystems, and subcomponents have been put together, 
     resulting in such equipment that is--
       ``(A) ready-to-use or ready-to-install; and
       ``(B) ready to be purchased directly from an entity.
       ``(15) The term `ineligible semiconductor manufacturing 
     equipment'--
       ``(A) means completed, fully assembled equipment that is 
     manufactured, assembled, or refurbished by a foreign entity 
     of concern, or a subsidiary or affiliate thereof, and 
     designed for use 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, measuring, and test equipment;
       ``(v) wafer slicing equipment;
       ``(vi) wafer dicing equipment;
       ``(vii) wire bonders;
       ``(viii) ion implantation equipment;
       ``(ix) chemical mechanical polishing;
       ``(x) diffusion or oxidation furnaces;
       ``(xi) thermal processing equipment; and
       ``(xii) automated material handling systems; and
       ``(C) does not include any part, chamber, subsystem, or 
     subcomponent that enables or is incorporated into such 
     equipment.''.
       (c) Ineligible Use of Funds.--Section 9909 of the William 
     M. (Mac) Thornberry National Defense Authorization Act for 
     Fiscal Year 2021 (15 U.S.C. 4659) is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Ineligible Use of Funds.--
       ``(1) In general.--Subject to paragraphs (2) and (3), the 
     Secretary shall include in the

[[Page S3887]]

     terms of each agreement with a covered entity for the award 
     of Federal financial assistance under section 9902, or with 
     the recipient of an award made under section 9906, 
     prohibitions with respect to a project relating to the 
     procurement, installation, or use of ineligible semiconductor 
     manufacturing equipment, to be effective for 10 years 
     beginning on the date on which the agreement is signed.
       ``(2) Waiver.--The Secretary may waive the prohibitions 
     referred to in paragraph (1) if--
       ``(A) the ineligible semiconductor manufacturing 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;
       ``(B) the ineligible semiconductor manufacturing equipment 
     at issue was manufactured and assembled by an entity that is 
     not a foreign entity of concern, or a subsidiary or affiliate 
     thereof, and was refurbished by a foreign entity of concern, 
     or a subsidiary or affiliate thereof; or
       ``(C)(i) the use of the ineligible semiconductor 
     manufacturing equipment complies with the requirements set 
     forth in the Export Administration Regulations (as such term 
     is 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 
     such waiver is in the national security interest of the 
     United States.
       ``(3) Prior agreements.--
       ``(A) In general.--The prohibitions referred to in 
     paragraph (1) shall not apply to any ineligible semiconductor 
     manufacturing equipment that--
       ``(i) has been installed by the applicable covered entity 
     prior to the date of enactment of the Chip EQUIP Act; or
       ``(ii) is allowed to be procured, installed, or used by the 
     applicable covered entity under the terms of an agreement 
     that was entered into before the date of enactment of the 
     Chip EQUIP Act between the Secretary and the covered entity.
       ``(B) Limitation.--Nothing in clause (ii) of subparagraph 
     (A) shall be construed to authorize the procurement, 
     installation, or use of ineligible semiconductor 
     manufacturing equipment that is not allowed under the terms 
     of an agreement entered into prior to the date of enactment 
     of the Chip EQUIP Act.
       ``(4) Foreign entities of concern.--Nothing in this 
     subsection may be construed to waive the application of 
     section 9907.''.
                                 ______