---
kind: "section"
citation: "15 C.F.R. § 231.202"
title: "15"
number: "231.202"
heading: "Prohibition on certain expansion transactions. (Expansion Clawback)"
url: "https://uscodex.org/cfr/15/231.202"
---

# §231.202. Prohibition on certain expansion transactions. (Expansion Clawback)

- (a) During the 10-year period beginning on the date of the award of Federal financial assistance under [15 U.S.C. 4652](/usc/15/4652.md), the covered entity and members of the affiliated group may not engage in any significant transaction involving the material expansion of semiconductor manufacturing capacity in a foreign country of concern; provided that this prohibition will not apply to—
  - (1) Existing facilities or equipment of a covered entity or any member of the affiliated group for manufacturing legacy semiconductors; or
  - (2) **Significant transactions involving material expansion of semiconductor manufacturing capacity that—**
    - (i) Produces legacy semiconductors; and
    - (ii) **Predominately serves the market of a foreign country of concern.**
- (b) No later than the date of the award of Federal financial assistance award under [15 U.S.C. 4652](/usc/15/4652.md), the covered entity shall enter into a required agreement that contains this prohibition and otherwise implements the requirements of this part.

## Notes

### Authority

Authority: 15 U.S.C. 4651, et seq.

### Source

Source: 88 FR 61614, Sept. 25, 2023, unless otherwise noted.