Section 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 , 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 , the covered entity shall enter into a required agreement that contains this prohibition and otherwise implements the requirements of this part.