,,ii  #aahth ,,congress  #b;d ,session  
,s4 #ejjb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #aj1
 #bjbd,mr4 ,kelly 7for himself and ,mrs4
 ,blackburn7 introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,commerce1         
,science1 and ,transportation  ,a ,,bill
  ,to prohibit covered entities that    
receive financial assistance relating to
 semiconductors from purchasing certain 
semiconductor manufacturing equipment   
from foreign entities of concern or     
subsidiaries of foreign entities of     
concern1 and for other purposes4  #a4   
,short title ,this ,act may be cited as 
the ,the ,chip ,equipment ,quality1     
,usefulness1 and ,integrity ,protection 
,act of #bjbd or the ,chip ,,equip ,act4
  #b4 ,purchases of semiconductor       
manufacturing equipment  7a7            
,definitions ,section #iija of the      
,william ,m4 7,mac7 ,thornberry         
,national ,defense ,authorization ,act  
for ,fiscal ,year #bjba 7#ae ,u4,s4,c4  

#dfea7 is amended by adding at the end  
the following3  7#ad7 ,the term         
completed1 fully assembled means the    
state in which all 7or substantially    
all7 necessary parts1 chambers1         
subsystems1 and subcomponents have been 
put together1 resulting in a            
ready-to-use or ready-to-install item to
 be directly purchased from an entity4  
7#ae7 ,the term ineligible equipment--  
7,a7 means completed1 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 fabrication1 assembly1 testing1  
advanced packaging1 production1 or      
research and development of             
semiconductors2  7,b7 includes-- 7i7    
deposition equipment2  7ii7 etching     
equipment2  7iii7 lithography equipment2
  7iv7 inspection and measuring         
equipment2  7v7 wafer slicing equipment2
  7vi7 wafer dicing equipment2  7vii7   
wire bonders2  7viii7 ion implantation  

equipment2  7ix7 chemical mechanical    
polishing2 and  7x7 diffusion or        
oxidation furnaces2 and  7,c7 does not  
include any part1 chamber1 subsystem1 or
 subcomponent that enables or is        
incorporated into such equipment4  4    
7b7 ,ineligible use of funds ,section   
#iijb of the ,william ,m4 7,mac7        
,thornberry ,national ,defense          
,authorization ,act for ,fiscal ,year   
#bjba 7#ae ,u4,s4,c4 #dfeb7 is amended  
by adding at the end the following3  7j7
 ,ineligible use of funds  7#a7 ,in     
general ,subject to paragraph 7#b71 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 procurement1            
installation1 or use of ineligible      
equipment1 to be effective for the      
duration of the agreement4  7#b7 ,waiver
 ,the ,secretary may waive the          
prohibitions described in paragraph 7#a7

 if-- 7,a7 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 capabilities2 or  7,b7 7i7   
the use of the ineligible equipment     
complies with the requirements set forth
 in the ,export ,administration         
,regulations1 as defined in section     
#agdb of the ,export ,control ,reform   
,act of #bjah 7#ej ,u4,s4,c4 #dhja72 and
  7ii7 the ,secretary1 in consultation  
with the ,director of ,national         
,intelligence or the ,secretary of      
,defense1 determines the waiver is in   
the national security interest of the   
,united ,states4  7#c7 ,foreign entities
 of concern ,nothing in this subsection 
shall be construed to waive the         
application of section #iijg4  4