Bill Aims to Block Aid for Companies That Build Advanced Chips in China

WASHINGTON—A bill providing roughly $52 billion to boost U.S. semiconductor manufacturing would impose so-called guardrails aimed at ensuring adversarial countries such as China don’t benefit too, according to the draft legislation.

The chip legislation has been narrowed from a broader bill to help the U.S. better compete in advanced technology, and details are still being hashed out ahead of expected procedural votes in the Senate as soon as Tuesday.