,,ii  #aaith ,,congress  #ast ,session  
,s4 #ccja  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #b1  
#bjbe,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 purchases of 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 ,chip ,equipment ,quality1          
,usefulness1 and ,integrity ,protection 
,act of #bjbe 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 assembled1 with respect
 to semiconductor manufacturing         
equipment1 means the state in which all 
7or substantially all7 necessary parts1 
chambers1 subsystems1 and subcomponents 
have been put together1 resulting in    
such equipment that is-- 7,a7           
ready-to-use or ready-to-install2 and   
7,b7 ready to be purchased directly from
 an entity4  7#ae7 ,the term ineligible 
semiconductor manufacturing equipment-- 
7,a7 means completed1 fully assembled   
equipment that is manufactured1         
assembled1 or refurbished by a foreign  
entity of concern or subsidiary thereof 
and designed for use 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 inspection1 measuring1 and test  
equipment2  7v7 wafer slicing equipment2
  7vi7 wafer dicing equipment2  7vii7   
wire bonders2  7viii7 ion implantation  

equipment2  7ix7 chemical mechanical    
polishing2  7x7 diffusion or oxidation  
furnaces2  7xi7 thermal processing      
equipment2 and  7xii7 automated material
 handling systems2 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   
#iiji of the ,william ,m4 7,mac7        
,thornberry ,national ,defense          
,authorization ,act for ,fiscal ,year   
#bjba 7#ae ,u4,s4,c4 #dfei7 is amended--
 7#a7 by redesignating subsection 7f7 as
 subsection 7g72 and  7#b7 by inserting 
after subsection 7e7 the following new  
subsection3  7f7 ,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     
section #iijb1 or with the recipient of 
an award made under section #iijf1      
prohibitions with respect to a project  

relating to the procurement1            
installation1 or use of ineligible      
semiconductor manufacturing equipment1  
to be effective for #aj years beginning 
on the date on which the agreement is   
signed4  7#b7 ,waiver ,the ,secretary   
may waive the prohibitions referred to  
in paragraph 7#a7 if-- 7,a7 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      
capabilities2  7,b7 the ineligible      
semiconductor manufacturing equipment at
 issue was manufactured and assembled by
 an entity that is not a foreign entity 
of concern or subsidiary thereof and was
 refurbished by a foreign entity of     
concern or subsidiary thereof2 or  7,c7 
7i7 the use of the ineligible           
semiconductor manufacturing equipment   

complies with the requirements set forth
 in the ,export ,administration         
,regulations 7as such term is defined in
 section #agdb of the ,export ,control  
,reform ,act of #bjah 7#ej ,u4,s4,c4    
#dhja772 and  7ii7 the ,secretary1 in   
consultation with the ,director of      
,national ,intelligence or the          
,secretary of ,defense1 determines such 
waiver is in the national security      
interest of the ,united ,states4  7#c7  
,foreign entities of concern ,nothing in
 this subsection may be construed to    
waive the application of section #iijg4 
4