U.S. proposes rules to block China, Russia-linked companies from CHIPS funding
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The U.S. Department of Commerce today proposed a set of rules for CHIPS for America Incentives Program.
The proposed rule offers additional details on national security measures applicable to the incentive program, limiting recipients of funding from investing in the expansion of semiconductor manufacturing in foreign countries of concern, such as China, Russia, North Korea and Iran.
Recipients are also barred from engaging in joint research or technology licensing efforts with a foreign entity of concern.
"CHIPS for America is fundamentally a national security initiative and these guardrails will help ensure malign actors do not have access to the cutting-edge technology that can be used against America and our allies," said Secretary of Commerce Gina Raimondo.
Furthermore, proposed rule classifies a list of semiconductors as critical to national security â defining these chips as not considered to be a legacy chip and therefore subject to tighter restrictions. 
"This measure will cover chips that are critical to U.S. national security needs, including current-generation and mature-node chips used for quantum computing, in radiation-intensive environments, and for other specialized military capabilities."
The Department is seeking public comment on the rules and will accept comment for 60 days, with final rule to be published later this year. 
Last month, U.S. launched first funding opportunity under CHIPS Act

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