News Detail

NIST to Hold Webinar Regarding Its Proposed Rule on Preventing the Improper Use of CHIPS Act Funding

The National Institute of Standards and Technology (NIST) announced a public webinar on March 30, 2023 to discuss its recent proposed rule to ensure that funding provided through the SWACCA-Supported CHIPS and Science Act does not directly or indirectly benefit foreign countries or entities of concern.

To ensure that funding provided through the CHIPS Act does not directly or indirectly benefit foreign countries or entities of concern, the CHIPS Act places certain limitations on CHIPS funding recipients, including: (1) prohibiting engagement in certain significant transactions involving the material expansion of semiconductor manufacturing capacity in foreign countries of concern; and (2) prohibiting certain joint research or technology licensing efforts with foreign entities of concern (i.e., an entity that is owned by, controlled by, or subject to the jurisdiction or direction of a country that is engaged in conduct that is detrimental to the national security of the United States).

There are, however, exceptions for certain transactions involving older (legacy) semiconductor manufacturing. To implement the legacy exception from the CHIPS Act, NIST is proposing a process through which the Secretary of Commerce (Secretary) will review transactions related to legacy semiconductor manufacturing in foreign countries of concern. The Secretary will provide notice to the funding recipient that a review is being conducted and, later, that the Secretary has reached an initial determination regarding whether the transaction is prohibited. Funding recipients may then submit additional information or request that the initial determination be reconsidered, after which the Secretary will provide a final determination. 

The webinar will be held on March 30, 2023 at 5pm ET. Those interested in participating must preregister here. Written comments on the proposed rule are due by May 22, 2023 and can be submitted here using Docket No. NIST-2023-0001 or RIN 0693-AB7.

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