S. 3301: Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025

This legislation, known as the Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025, aims to regulate the procurement of semiconductor manufacturing equipment in the United States. Here are the main provisions of the bill:

Definition of Terms

The bill provides definitions related to semiconductor manufacturing equipment. Key terms include:

• Completed, fully assembled equipment: Equipment that is ready to use or install, with all necessary parts put together.
• Ineligible semiconductor manufacturing equipment: Equipment that is either manufactured, assembled, or refurbished by a foreign entity of concern or its subsidiary, intended for semiconductor fabrication, testing, or related activities.

Prohibitions on Equipment Purchases

The bill prohibits U.S. entities from purchasing ineligible semiconductor manufacturing equipment, which includes various types of equipment such as:

• Deposition equipment
• Etching equipment
• Lithography equipment
• Inspection and measurement equipment
• Wafer slicing and dicing equipment
• Wire bonders
• Ion implantation equipment
• Chemical mechanical polishing equipment
• Diffusion or oxidation furnaces
• Thermal processing equipment
• Automated material handling systems

Financial Assistance Provisions

The bill includes provisions related to federal financial assistance for covered entities, specifying:

• Agreements with these entities must include prohibitions on using funds for purchasing ineligible semiconductor manufacturing equipment, effective for 10 years from signing the agreement.
• There are conditions under which the Secretary can waive these prohibitions, such as if the equipment is not available in sufficient quantities from U.S. or allied sources, or if it aligns with national security interests.

National Security Considerations

The bill emphasizes that the Secretary of Defense and the Director of National Intelligence can influence waiver decisions based on national security concerns.

Waiver Conditions

Waivers may be granted under specific circumstances, including:

• If the equipment is not produced domestically or by allies in adequate quality or quantity.
• If the equipment was manufactured by a non-foreign entity of concern but later refurbished by such an entity.
• Compliance with export regulations and findings that a waiver serves U.S. national security interests.

Impact Summary

The act seeks to protect U.S. semiconductor manufacturing capabilities and national security by limiting the sources from which such critical equipment can be obtained.

Relevant Companies

• INTC (Intel Corporation) - A major semiconductor manufacturer that may be affected by alterations in equipment sourcing.
• AMD (Advanced Micro Devices, Inc.) - Another key player in the semiconductor industry potentially impacted by changes in equipment procurement regulations.
• TSM (Taiwan Semiconductor Manufacturing Company) - A leading semiconductor foundry that could experience implications if U.S. firms shift their equipment purchasing strategies.