Chips Act money to have guardrails against benefiting adversarial countries

The DoC will now allow 60 days for comments on the proposed rules.

“The innovation and technology funded in the CHIPS Act is how we plan to expand the technological and national security advantages of America and our allies; these guardrails will help ensure we stay ahead of adversaries for decades to come,” said Secretary of Commerce Gina Raimondo.

Under the new rule, transactions above $100,000 that expand existing leading-edge and advanced technology facilities in adversarial countries by five percent or more are banned for 10 years from the date of the Chips Act grant.

Adding new production lines or expanding a legacy facility’s production in an adversarial country beyond 10 percent is also forbidden.

Chips Act money cannot be used on joint research or technology licensing with an adversarial country including agreements to make patents, sharing trade secrets or other information.

If the rules are broken, recipients must repay the money.

The final rules will be published later this year.

Intel is expected to get $7.5 billion of  Chips Act money for its two Arizona fabs costing $10 billion each. TSMC is expected $6 billion for its US fabs and Samsung is expected to get $3.7 billion.

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