Cotton Introduces Amendment to Prohibit Companies From Expanding Semiconductor Manufacturing in China

Press Release

Senator Tom Cotton (R-Arkansas) today introduced an amendment to the CHIPS+ package to prohibit companies that receive federal grants and tax credits from expanding semiconductor production in China.

"We should be bolstering manufacturing at home--not expanding abroad. My amendment will ensure companies that receive taxpayer funds can't turn around and build more factories in China," said Cotton.

This amendment would:

1. Eliminate loopholes that would allow semiconductor companies to take taxpayer money while expanding production of so-called "legacy semiconductors" in China.
2. Eliminate a "Mitigation" process that would allow semiconductor companies to expand advanced semiconductor manufacturing in China and keep CHIPS grant money while keeping taxpayer funds.
3. Provide a more comprehensive definition of "semiconductor manufacturing" so that companies cannot take taxpayer money and move other parts of their manufacturing supply chains like testing, packaging, and R&D to China.
4. Eliminate other loopholes that companies could use to argue with the Department of Commerce about whether their activities in China disqualify them from receiving taxpayer funds.

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