H.R. 6207: Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025

This bill, titled the Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025, proposes specific measures regarding the procurement of semiconductor manufacturing equipment. Its main aim is to enhance national security by limiting certain purchases of semiconductor equipment from foreign entities deemed to pose a risk.

Key Provisions

• Definition of Terms: The bill defines "completed, fully assembled" semiconductor manufacturing equipment as that which is ready for use and available for purchase. It also identifies "ineligible semiconductor manufacturing equipment" as being those items manufactured, assembled, or refurbished by foreign entities of concern, including subsidiaries of such entities.
• Prohibition on Purchases: The bill specifically prohibits the purchase of ineligible semiconductor manufacturing equipment. This includes various types of equipment used in the production and processing of semiconductors, such as:
  • Deposition equipment
  • Etching equipment
  • Lithography equipment
  • Inspection, measuring, and test equipment
  • Wafer slicing and dicing equipment
  • Wire bonders
  • Ion implantation equipment
  • Chemical mechanical polishing tools
  • Furnaces for diffusion or oxidation
  • Thermal processing equipment
  • Automated material handling systems
• Funding Restrictions: The bill establishes that federal financial assistance agreements will include prohibitions on the procurement and use of ineligible semiconductor manufacturing equipment for a period of ten years from the date of the agreement's signing.
• Waiver Conditions: There are conditions under which the Secretary may waive these prohibitions. This includes scenarios where:
  • The required equipment is not available in sufficient quality or quantity from the U.S. or allied countries.
  • The equipment was not originally produced by a foreign entity of concern but was refurbished by one.
  • The use of the equipment aligns with export regulations and is deemed necessary for national security by relevant authorities.

Relevant Companies

• ASML (ASML) - This company is a leading supplier of photolithography equipment used in the semiconductor manufacturing process. Restrictions on equipment purchases may impact their sales prospects in the U.S. market.
• Lam Research Corporation (LRCX) - Lam Research manufactures equipment used in the etching and deposition processes. The bill may affect their ability to supply certain products to U.S. companies.
• Tower Semiconductor Ltd. (TSEM) - If Tower relies on foreign entities for equipment, changes in procurement regulations could impact their operations and collaboration with U.S. companies.