- US lawmakers propose a bill restricting CHIPS Act recipients from buying Chinese equipment.
- Legislation targets chipmaking tools, including lithography machines and silicon wafer devices.
- Bill also restricts equipment from Iran, Russia, and North Korea with certain exceptions.
A group of US lawmakers from both parties presented a bill in the House that would prevent CHIPS Act grant recipients from buying Chinese chipmaking equipment for a decade. The legislation focuses on various chip manufacturing tools, from sophisticated lithography machinery, such as that made by the Dutch firm ASML, to devices that cut and shape the silicon wafers used for chip production.
The legislation was presented in the House by Republican Jay Obernolte alongside Democratic member Zoe Lofgren. In the Senate, Democrat Mark Kelly and Republican Marsha Blackburn intend to present the bill in December. Approved during the Biden administration in 2022, the CHIPS Act aimed to enhance the US semiconductor manufacturing sector and provided $39 billion to encourage the development of new factories and the expansion of current facilities.
Also Read: Foxconn, OpenAI Partner on AI Hardware Manufacturing
Chipmakers such as Intel, TSMC from Taiwan, and Samsung Electronics of South Korea have obtained funding via the legislation, but the US subsequently changed Intel's financial grant into an equity position. China has poured over $40 billion into the chip sector, emphasizing manufacturing equipment, and the market share for this equipment has significantly increased, according to background information given by the lawmakers. US manufacturers of chip equipment are increasingly worried that limitations on exporting their tools to China will reduce sales and impact their capacity to invest in research and development.
While the focus of the legislation is primarily on Chinese equipment, the bill also prohibits tools from other nations of concern, including Iran, Russia, and North Korea. The bill contains exceptions that allow the US to provide waivers if certain tools are not manufactured in the US or its allied nations. The legislation would solely prohibit imports to the US and would not impact the international activities of CHIPS Act grant recipients.