Mark Kelly Introduces Bill to Restrict Chinese Chipmaking Equipment

Senator Mark Kelly (D-AZ) and Senator Marsha Blackburn (R-TN) introduced the Chip Equipment Quality, Usefulness, and Integrity Protection Act, known as the Chip EQUIP Act. 

The legislation aims to prevent American semiconductor companies from using Chinese-made manufacturing equipment if they receive federal funding.

Additionally, it would prohibit companies that receive CHIPS Act funding from purchasing specialized manufacturing tools or equipment made by entities owned or controlled by China, Russia, North Korea, or Iran.

"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," Kelly said. "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."

Additional Context

Most chipmaking equipment currently comes from American manufacturers or companies based in friendly countries such as Japan and the Netherlands. But China has been ramping up its presence in this market while making substantial financial commitments to expand its semiconductor capabilities.

China allocated $47.5 billion to its chip sector in May 2024, with significant resources directed toward equipment manufacturing. 

Huawei has also moved to establish a facility dedicated to developing technology that could rival Western and Japanese chipmaking tool producers.

Bipartisan Support

Blackburn argued that protecting semiconductor supply chains requires stopping U.S. companies from purchasing equipment from nations that pose strategic threats.

Representative Zoe Lofgren (D-CA), who introduced the companion bill in November alongside Representative Jay Obernolte (R-CA), highlighted how the original CHIPS legislation represented a significant federal commitment to boosting domestic chip production and fixing weaknesses in supply chains over the years.

Obernolte emphasized that “The Chip EQUIP Act ensures that the tools used in our fabrication facilities meet the highest standards of reliability and integrity, reinforcing a resilient supply chain," adding that it "helps protect America’s technological leadership at a moment when global competition has never been more intense.”

The proposed law would modify the CHIPS Act to establish clear rules about what equipment can be purchased for federally funded projects.

"With this bill, we're taking steps to prevent that and keep this industry strong here at home,” Kelly concluded.