True or False: Companies receiving CHIPS Act funding are prohibited from expanding semiconductor manufacturing capacity in China for 10 years.

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True. The CHIPS Act includes a critical China provision: any company receiving CHIPS funding cannot "materially expand" semiconductor manufacturing capacity in China or other "foreign countries of concern" for 10 years. This guardrail targets TSMC, Samsung, and Intel—all of which operate fabs in China. By accepting billions in U.S. subsidies, these companies must freeze or shrink their Chinese operations. Congress added this provision to ensure taxpayer dollars don't subsidize production that ends up supporting Chinese military or surveillance tech. The restriction reveals bipartisan consensus: no matter how much the U.S. pays to attract foreign chipmakers, China must not benefit.

True or False: Companies receiving CHIPS Act funding are prohibited from expanding semiconductor manufacturing capacity in China for 10 years.

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