[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4982 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4982
To provide incentives for the production of semiconductors for the
United States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 8, 2020
Mr. Cornyn (for himself, Mr. Warner, Mr. Schumer, and Mr. Cotton)
introduced the following bill; which was read twice and referred to the
Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To provide incentives for the production of semiconductors for the
United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Creating Helpful Incentives for
Producing Semiconductors for America and Foundries Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) The term ``appropriate committees of Congress'' means--
(A) the Select Committee on Intelligence, the
Committee on Energy and Natural Resources, the
Committee on Commerce, Science, and Transportation, the
Committee on Foreign Relations, the Committee on Armed
Services, the Committee on Appropriations, the
Committee on Banking, Housing, and Urban Affairs, the
Committee on Homeland Security and Governmental
Affairs, and the Committee on Finance of the Senate;
and
(B) the Permanent Select Committee on Intelligence,
the Committee on Energy and Commerce, the Committee on
Foreign Affairs, the Committee on Armed Services, the
Committee on Science, Space, and Technology, the
Committee on Appropriations, the Committee on Financial
Services, the Committee on Homeland Security, and the
Committee on Ways and Means of the House of
Representatives.
(2) The term ``covered entity'' means a private entity, a
consortium of private entities, or a consortium of public and
private entities with a demonstrated ability to substantially
finance, construct, expand, or modernize a facility relating to
fabrication, assembly, testing, advanced packaging, or research
and development of semiconductors.
(3) The term ``covered incentive''--
(A) means an incentive offered by a governmental
entity to a covered entity for the purposes of
constructing within the jurisdiction of the
governmental entity, or expanding or modernizing an
existing facility within that jurisdiction, a facility
described in paragraph (2); and
(B) a workforce-related incentive (including a
grant agreement relating to workforce training or
vocational education), any concession with respect to
real property, funding for research and development
with respect to semiconductors, and any other incentive
determined appropriate by the Secretary, in
consultation with the Secretary of State.
(4) The term ``person'' includes an individual,
partnership, association, corporation, organization, or any
other combination of individuals.
(5) The term ``foreign entity''--
(A) means--
(i) a government of a foreign country and a
foreign political party;
(ii) a natural person who is not a lawful
permanent resident of the United States,
citizen of the United States, or any other
protected individual (as such term is defined
in section 274B(a)(3) of the Immigration and
Nationality Act (8 U.S.C. 1324b(a)(3))); or
(iii) a partnership, association,
corporation, organization, or other combination
of persons organized under the laws of or
having its principal place of business in a
foreign country; and
(B) includes--
(i) any person owned by, controlled by, or
subject to the jurisdiction or direction of an
entity listed in subparagraph (A);
(ii) any person, wherever located, who acts
as an agent, representative, or employee of an
entity listed in subparagraph (A);
(iii) any person who acts in any other
capacity at the order, request, or under the
direction or control, of an entity listed in
subparagraph (A), or of a person whose
activities are directly or indirectly
supervised, directed, controlled, financed, or
subsidized in whole or in majority part by an
entity listed in subparagraph (A);
(iv) any person who directly or indirectly
through any contract, arrangement,
understanding, relationship, or otherwise, owns
25 percent or more of the equity interests of
an entity listed in subparagraph (A);
(v) any person with significant
responsibility to control, manage, or direct an
entity listed in subparagraph (A);
(vi) any person, wherever located, who is a
citizen or resident of a country controlled by
an entity listed in subparagraph (A); or
(vii) any corporation, partnership,
association, or other organization organized
under the laws of a country controlled by an
entity listed in subparagraph (A).
(6) The term ``foreign entity of concern'' means any
foreign entity that is--
(A) designated as a foreign terrorist organization
by the Secretary of State under section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189);
(B) included on the list of specially designated
nationals and blocked persons maintained by the Office
of Foreign Assets Control of the Department of the
Treasury;
(C) owned by, controlled by, or subject to the
jurisdiction or direction of a government of a foreign
country that is listed in section 2533c of title 10,
United States Code; or
(D) alleged by the Attorney General to have been
involved in activities for which a conviction was
obtained under--
(i) chapter 37 of title 18, United States
Code (commonly known as the ``Espionage Act'')
(18 U.S.C. 792 et seq.);
(ii) section 951 or 1030 of title 18,
United States Code;
(iii) chapter 90 of title 18, United States
Code (commonly known as the ``Economic
Espionage Act of 1996'');
(iv) the Arms Export Control Act (22 U.S.C.
2751 et seq.);
(v) section 224, 225, 226, 227, or 236 of
the Atomic Energy Act of 1954 (42 U.S.C. 2274-
2278; 2284);
(vi) the Export Control Reform Act of 2018
(50 U.S.C. 4801 et seq.); or
(vii) the International Economic Emergency
Powers Act (50 U.S.C. 1701 et seq.); or
(E) determined by the Secretary, in consultation
with the Secretary of Defense and the Director of
National Intelligence, to be engaged in unauthorized
conduct that is detrimental to the national security or
foreign policy of the United States under this Act.
(7) The term ``governmental entity'' means a State or local
government.
(8) The term ``Secretary'' means the Secretary of Commerce.
(9) The term ``semiconductor'' has the meaning given that
term by the Secretary.
SEC. 3. SEMICONDUCTOR INCENTIVES.
(a) Financial Assistance Program.--
(1) In general.--The Secretary shall establish in the
Department of Commerce a program that, in accordance with the
requirements of this section and subject to the availability of
appropriations for such purposes, provides Federal financial
assistance to covered entities to incentivize investment in
facilities and equipment in the United States for semiconductor
fabrication, assembly, testing, advanced packaging, or research
and development.
(2) Procedure.--
(A) In general.--A covered entity shall submit to
the Secretary an application that describes the project
for which the covered entity is seeking financial
assistance under this section.
(B) Eligibility.--In order for a covered entity to
qualify for financial assistance under this section,
the covered entity shall demonstrate to the Secretary,
in the application submitted by the covered entity
under subparagraph (A), that--
(i) the covered entity has a documented
interest in constructing, expanding, or
modernizing a facility described in paragraph
(1); and
(ii) with respect to the project described
in clause (i), the covered entity has--
(I) been offered a covered
incentive;
(II) made commitments to worker and
community investment, including
through--
(aa) training and education
benefits paid by the covered
entity; and
(bb) programs to expand
employment opportunity for
economically disadvantaged
individuals;
(III) secured commitments from
regional educational and training
entities and institutions of higher
education to provide workforce
training, including programming for
training and job placement of
economically disadvantaged individuals;
and
(IV) an executable plan to sustain
the facility described in clause (i)
without additional Federal financial
assistance under this subsection for
facility support.
(C) Considerations for review.--With respect to the
review by the Secretary of an application submitted by
a covered entity under subparagraph (A)--
(i) the Secretary may not approve the
application unless the Secretary--
(I) confirms that the covered
entity has satisfied the eligibility
criteria under subparagraph (B);
(II) determines that the project to
which the application relates is in the
interest of the United States; and
(III) has notified the appropriate
committees of Congress not later than
15 days before making any commitment to
provide a grant to any covered entity
that exceeds $10,000,000; and
(ii) the Secretary may consider whether--
(I) the covered entity has
previously received financial
assistance made under this subsection;
(II) the governmental entity
offering the applicable covered
incentive has benefitted from financial
assistance previously provided under
this subsection;
(III) the covered entity has
demonstrated that they are responsive
to the national security needs or
requirements established by the
Intelligence Community (or an agency
thereof), the National Nuclear Security
Administration, or the Department of
Defense; and
(IV) when practicable, a consortium
that is considered a covered entity
includes a small business concern, as
defined under section 3 of the Small
Business Act (15 U.S.C. 632),
notwithstanding section 121.103 of
title 13, Code of Federal Regulations;
and
(iii) the Secretary may not approve an
application if the Secretary determines that
the covered entity is a foreign entity of
concern.
(D) Records.--The Secretary may request records and
information from the applicant to review the status of
a covered entity. The applicant shall provide the
records and information requested by the Secretary.
(3) Amount.--
(A) In general.--The Secretary shall determine the
appropriate amount and funding type for each financial
assistance award made to a covered entity under this
subsection.
(B) Larger investment.--Federal investment in any
individual project shall not exceed $3,000,000,000
unless the Secretary, in consultation with the
Secretary of Defense and the Director of National
Intelligence, recommends to the President, and the
President certifies and reports to the appropriate
committees of Congress, that a larger investment is
necessary to--
(i) significantly increase the proportion
of reliable domestic supply of semiconductors
relevant for national security and economic
competitiveness that can be met through
domestic production; and
(ii) meet the needs of national security.
(4) Use of funds.--A covered entity that receives a
financial assistance award under this subsection may only use
the financial assistance award amounts to--
(A) finance the construction, expansion, or
modernization of a facility or equipment to be used for
semiconductors described in paragraph (1), as
documented in the application submitted by the covered
entity under paragraph (2)(B), as determined necessary
by the Secretary for purposes relating to the national
security and economic competitiveness of the United
States;
(B) support workforce development for a facility
described in subparagraph (A);
(C) support site development and modernization for
a facility described in subparagraph (A); and
(D) pay reasonable costs related to the operating
expenses for a facility described in subparagraph (A),
including specialized workforce, essential materials,
and complex equipment maintenance, as determined by the
Secretary.
(5) Clawback.--
(A) Target dates.--For all major awards to covered
entities, the Secretary shall--
(i) determine target dates by which a
project shall commence and complete; and
(ii) set these dates by the time of award.
(B) Progressive recovery for delays.--If the
project does not commence and complete by the set
target dates in (A), the Secretary shall progressively
recover up to the full amount of an award provided to a
covered entity under this subsection.
(C) Technology clawback.--The Secretary shall
recover the full amount of an award provided to a
covered entity under this subsection if, during the
applicable term with respect to the award, the covered
entity knowingly engages in any joint research or
technology licensing effort--
(i) with a foreign entity of concern; and
(ii) that relates to a technology or
product that raises national security concerns,
as determined by the Secretary and communicated
to the covered entity before engaging in such
joint research or technology licensing.
(D) Waiver.--In the case of delayed projects, the
Secretary may waive elements of the clawback provisions
incorporated in each major award after--
(i) making a formal determination that
circumstances beyond the ability of the covered
entity to foresee or control are responsible
for delays; and
(ii) submitting congressional notification.
(E) Congressional notification.--The Secretary
shall notify appropriate committees of Congress--
(i) of the clawback provisions attending
each such major award; and
(ii) of any waivers provided, not later
than 15 days after the date on which such a
waiver was provided.
(b) Coordination Required.--In carrying out the program established
under subsection (a), the Secretary shall coordinate with the Secretary
of State, the Secretary of Defense, the Secretary of Homeland Security,
the Secretary of Energy, and the Director of National Intelligence.
(c) GAO Reviews.--The Comptroller General of the United States
shall--
(1) not later than 2 years after the date of disbursement
of the first financial award under subsection (a), and
biennially thereafter for 10 years, conduct a review of the
program established under subsection (a), which shall include,
at a minimum--
(A) a determination of the number of instances in
which financial assistance awards were provided under
that subsection during the period covered by the
review;
(B) an evaluation of how--
(i) the program is being carried out,
including how recipients of financial
assistance awards are being selected under the
program; and
(ii) other Federal programs are leveraged
for manufacturing, research, and training to
complement the financial assistance awards
awarded under the program; and
(C) a description of the outcomes of projects
supported by awards made under the program, including a
description of--
(i) facilities described in subsection
(a)(1) that were constructed, expanded, or
modernized as a result of awards made under the
program;
(ii) research and development carried out
with awards made under the program;
(iii) workforce training programs carried
out with awards made under the program,
including efforts to hire individuals from
disadvantaged populations; and
(iv) the impact of projects on the United
States share of global microelectronics
production; and
(2) submit to the appropriate committees of Congress the
results of each review conducted under paragraph (1).
SEC. 4. DEPARTMENT OF DEFENSE.
(a) Department of Defense Efforts.--
(1) In general.--Subject to the availability of
appropriations for such purposes, the Secretary of Defense, in
consultation with the Secretary of Commerce, the Secretary of
Energy, the Secretary of Homeland Security, and the Director of
National Intelligence, shall establish a public-private
partnership through which the Secretary shall work to
incentivize the formation of one or more consortia of companies
(or other such partnerships of private-sector entities, as
appropriate) to ensure the development and production of
measurably secure microelectronics, including integrated
circuits, logic devices, memory, and the packaging and testing
practices that support these microelectronic components by the
Department of Defense, the intelligence community, critical
infrastructure sectors, and other national security
applications. Such incentives may include the use of grants
under section 3, and providing incentives for the creation,
expansion, or modernization of one or more commercially
competitive and sustainable microelectronics manufacturing or
advanced research and development facilities in the United
States.
(2) Risk mitigation requirements.--A participant in a
consortium formed with incentives under paragraph (1)--
(A) shall have the potential to enable design,
perform fabrication, assembly, package, or test
functions for microelectronics deemed critical to
national security as defined by the National Security
Advisor and the Secretary of Defense;
(B) may be a fabless company migrating its designs
to the facility envisioned in paragraph (1) or
migrating to an existing facility onshore;
(C) may be companies, including fabless companies
and companies that procure large quantities of
microelectronics, willing to co-invest to achieve the
objectives set forth in paragraph (1);
(D) shall include management processes to identify
and mitigate supply chain security risks; and
(E) shall be capable of providing microelectronic
components that are consistent with applicable
measurably secure supply chain and operational security
standards established under section 224(b) of the
National Defense Authorization Act for Fiscal Year 2020
(Public Law 116-92).
(3) National security considerations.--The Secretary of
Defense and the Director of National Intelligence shall select
participants for each consortium and or partnership formed with
incentives under paragraph (1). In selecting such participants,
the Secretary and the Director may jointly consider whether the
companies--
(A) have participated in previous programs and
projects of the Department of Defense, Department of
Energy, or the intelligence community, including--
(i) the Trusted Integrated Circuit program
of the Intelligence Advanced Research Projects
Activity;
(ii) trusted and assured microelectronics
projects, as administered by the Department of
Defense;
(iii) the Electronics Resurgence Initiative
program of the Defense Advanced Research
Projects Agency; or
(iv) relevant semiconductor research
programs of the Advanced Research Projects
Agency-Energy;
(B) have demonstrated an ongoing commitment to
performing contracts for the Department of Defense and
the intelligence community;
(C) are approved by the Defense Counterintelligence
and Security Agency or the Office of the Director of
National Intelligence as presenting an acceptable
security risk, taking into account supply chain
assurance vulnerabilities, counterintelligence risks,
and any risks presented by companies whose beneficial
owners are located outside the United States; and
(D) are evaluated periodically for foreign
ownership, control, or influence by a foreign entity of
concern.
(4) Nontraditional defense contractors and commercial
entities.--Arrangements entered into to carry out paragraph (1)
shall be in such form as the Secretary of Defense determines
appropriate to encourage industry participation of
nontraditional defense contractors or commercial entities and
may include a contract, a grant, a cooperative agreement, a
commercial agreement, the use of other transaction authority
under section 2371 of title 10, United States Code, or another
such arrangement.
(5) Implementation.--Subject to the availability of
appropriations for such purposes, the Secretary of Defense--
(A) shall carry out paragraph (1) jointly through
the Office of the Under Secretary of Defense for
Research and Engineering and the Office of the Under
Secretary of Defense for Acquisition and Sustainment;
and
(B) may carry out paragraph (1) in collaboration
with any such other component of the Department of
Defense as the Secretary of Defense considers
appropriate.
(6) Other initiatives.--
(A) Required initiatives.--Subject to the
availability of appropriations for such purposes, the
Secretary of Defense, in consultation with the
Secretary of Energy and the Administrator of the
National Nuclear Security Administration, as
appropriate, may dedicate initiatives within the
Department of Defense to carry out activities to
advance radio frequency, mixed signal, radiation
tolerant, and radiation hardened microelectronics that
support national security and dual-use applications.
(B) Support plan required.--The Secretary of
Defense, in consultation with the heads of appropriate
departments and agencies of the Federal Government,
shall develop a plan, including assessment of resource
requirements and designation of responsible officials,
for the maintenance of capabilities to produce trusted
and assured microelectronics to support current and
legacy defense systems, other government systems
essential for national security, and critical
infrastructure of the United States, especially for
items with otherwise limited commercial demand.
(C) Assessment of public private partnerships and
activities.--In conjunction with the activities carried
out under this section, the Secretary of Defense shall
enter into an agreement with the National Academies of
Sciences, Engineering, and Medicine to undertake a
study to make recommendations and provide policy
options for optimal public-private partnerships and
partnership activities, including an analysis of
establishing a semiconductor manufacturing corporation
to leverage private sector technical, managerial, and
investment expertise, and private capital, as well as
an assessment of and response to the industrial
policies of other nations to support industries in
similar critical technology sectors, and deliver such
study to the congressional defense committees not later
than October 1, 2022.
(7) Reports.--
(A) Report by secretary of defense.--Not later than
90 days after the date of the enactment of this Act,
the Secretary of Defense shall submit to Congress a
report on the plans of the Secretary to carry out
paragraphs (1) and (6).
(B) Biennial reports by comptroller general of the
united states.--Not later than one year after the date
on which the Secretary submits the report required by
subparagraph (A) and not less frequently than once
every two years thereafter for a period of 10 years,
the Comptroller General of the United States shall
submit to Congress a report on the activities carried
out under this subsection.
(b) National Network for Microelectronics Research and
Development.--
(1) In general.--Subject to the availability of
appropriations for such purposes, the Secretary of Defense may
establish a national network for microelectronics research and
development--
(A) to enable the laboratory to fabrication
transition of microelectronics innovations in the
United States; and
(B) to expand the global leadership in
microelectronics of the United States.
(2) Activities.--The national network for microelectronics
research and development shall--
(A) enable cost-effective exploration of new
materials, devices, and architectures, and prototyping
in domestic facilities to safeguard domestic
intellectual property;
(B) accelerate the transition of new technologies
to domestic microelectronics manufacturers; and
(C) conduct other relevant activities deemed
necessary by the Secretary of Defense for accomplishing
the purposes of the national network for
microelectronics research and development.
SEC. 5. DEPARTMENT OF COMMERCE STUDY ON STATUS OF MICROELECTRONICS
TECHNOLOGIES IN THE UNITED STATES INDUSTRIAL BASE.
(a) In General.--Beginning not later than 180 days after the date
of the enactment of this Act, the Secretary, in consultation with the
heads of other Federal departments and agencies, as appropriate,
including the Secretary of Defense, the Secretary of Homeland Security,
and the Secretary of Energy, shall undertake a review, which shall
include a survey, using authorities in section 705 of the Defense
Production Act of 1950 (50 U.S.C. 4555), to assess the capabilities of
the United States industrial base to support the national defense in
light of the global nature of the supply chain and significant
interdependencies between the United States industrial base and the
industrial bases of foreign countries with respect to the manufacture,
design, and end use of microelectronics.
(b) Response to Survey.--To the extent authorized by section 705 of
the Defense Production Act of 1950 (50 U.S.C. 4555) and section 702 of
title 15, Code of Federal Regulations, the Secretary shall ensure all
relevant potential respondents reply to the survey, including the
following:
(1) Corporations, partnerships, associations, or any other
organized groups domiciled and with substantial operations in
the United States.
(2) Corporations, partnerships, associations, or any other
organized groups with a physical presence of any kind in the
United States.
(3) Foreign domiciled corporations, partnerships,
associations, or any other organized groups with a physical
presence of any kind in the United States.
(c) Information Requested.--To the extent authorized by section 705
of the Defense Production Act of 1950 (50 U.S.C. 4555) and section 702
of title 15, Code of Federal Regulations, the information sought from a
responding entity specified in subsection (b) shall include, at
minimum, information on the following with respect to the manufacture,
design, or end use of microelectronics by such entity:
(1) An identification of the geographic scope of
operations.
(2) Information on relevant cost structures.
(3) An identification of types of microelectronics
development, manufacture, assembly, test, and packaging
equipment in operation at such an entity.
(4) An identification of all relevant intellectual
property, raw materials, and semi-finished goods and components
sourced domestically and abroad by such an entity.
(5) Specifications of the microelectronics manufactured or
designed by such an entity, descriptions of the end uses of
such microelectronics, and a description of any technical
support provided to end users of such microelectronics by such
an entity.
(6) Information on domestic and export market sales by such
an entity.
(7) Information on the financial performance, including
income and expenditures, of such an entity.
(8) A list of all foreign and domestic subsidies, and any
other financial incentives, received by such an entity in each
market in which such entity operates.
(9) A list of regulatory or other informational requests
about the respondents' operations, sales, or other proprietary
information by the People's Republic of China entities under
its direction or officials of the Chinese Communist Party, a
description of the nature of each request, and the type of
information provided.
(10) Information on any joint ventures, technology
licensing agreements, and cooperative research or production
arrangements of such an entity.
(11) A description of efforts by such an entity to evaluate
and control supply chain risks.
(12) A list and description of any sales, licensing
agreements, or partnerships between such an entity and the
People's Liberation Army or People's Armed Police, including
any business relationships with entities through which such
sales, licensing agreements, or partnerships may occur.
(d) Report.--
(1) In general.--The Secretary shall, in consultation with
the heads of other appropriate Federal departments and
agencies, as appropriate, including the Secretary of Defense,
the Secretary of Homeland Security, and the Secretary of
Energy, submit to Congress a report on the results of the
review required by subsection (a). The report shall include the
following:
(A) An assessment of the results of the review.
(B) A list of critical technology areas impacted by
potential disruptions in production of
microelectronics, and a detailed description and
assessment of the impact of such potential disruptions
on such areas.
(C) A description and assessment of gaps and
vulnerabilities in the microelectronics supply chain
and the national industrial supply base.
(2) Form.--The report required by paragraph (1) may be
submitted in classified form.
SEC. 6. FUNDING FOR DEVELOPMENT AND ADOPTION OF MEASURABLY SECURE
SEMICONDUCTORS AND MEASURABLY SECURE SEMICONDUCTORS
SUPPLY CHAINS.
(a) Multilateral Semiconductors Security Fund.--
(1) Establishment of fund.--The Secretary of the Treasury
is authorized to establish a trust fund, to be known as the
``Multilateral Semiconductors Security Fund'' (in this section
referred to as the ``Fund''), consisting of any appropriated
funds credited to the Fund for such purpose.
(2) Reporting requirement.--If the Fund authorized under
subsection (a)(1) is not established, 180 days after the date
of the enactment of this Act and annually thereafter until such
Fund is established, the Secretary of the Treasury, in
coordination with the Secretary of State, shall provide, in
writing, to the appropriate committees of Congress a rationale
for not establishing the Fund.
(3) Investment of amounts.--
(A) Investment of amounts.--If the Fund authorized
under subsection (a)(1) is established, the Secretary
of the Treasury shall invest such portion of the Fund
as is not required to meet current withdrawals in
interest-bearing obligations of the United States or in
obligations guaranteed as to both principal and
interest by the United States.
(B) Interest and proceeds.--The interest on, and
the proceeds from the sale or redemption of, any
obligations held in the Fund shall be credited to and
form a part of the Fund.
(4) Use of fund.--
(A) In general.--Subject to subparagraph (B),
amounts in the Fund shall be available, as provided in
advance in an appropriations Act, to the Secretary of
State--
(i) to provide funding through the common
funding mechanism described in subsection
(b)(1) to support the development and adoption
of measurably secure semiconductors and
measurably secure semiconductors supply chains;
and
(ii) to otherwise carry out this section.
(B) Availability contingent on international
arrangement or agreement.--
(i) In general.--Amounts in the Fund shall
be available to the Secretary of State, subject
to appropriation, on and after the date on
which the Secretary of State enters into an
arrangement or agreement with the governments
of countries that are partners of the United
States to participate in the common funding
mechanism under paragraph (1) of subsection
(b).
(ii) Consultation.--Before entering into an
arrangement or agreement as described clause
(i), the Secretary of State, in consultation
with the Secretary of Commerce, shall ensure
any partner government maintains export control
licensing policies on semiconductor technology
substantively equivalent to the United States
with respect to restrictions on such exports to
the People's Republic of China.
(b) Common Funding Mechanism for Development and Adoption of
Measurably Secure Semiconductors and Measurably Secure Semiconductors
Supply Chains.--
(1) In general.--The Secretary of State, in consultation
with the Secretary of Commerce, the Secretary of Defense, the
Secretary of Homeland Security, the Secretary of the Treasury,
the Secretary of Energy, and the Director of National
Intelligence, is authorized to establish a common funding
mechanism, in coordination with foreign partners, that uses
amounts from the Fund to support the development and adoption
of secure semiconductors and secure semiconductors supply
chains, including for use in research and development
collaborations among partner countries participating in the
common funding mechanism. In establishing and sustaining a
common funding mechanism, the Secretary of State should
leverage United States funding in order to secure contributions
and commitments from trusted foreign partners, including cost
sharing and other cooperative measures leading to the
development and adoption of secure semiconductors and secure
microelectronic supply chains.
(2) Commitments.--In creating and sustaining a common
funding mechanism described in paragraph (1), the Secretary of
State should promote efforts among foreign partners to--
(A) establish transparency requirements for any
subsidies or other financial benefits (including
revenue foregone) provided to semiconductors firms
located in or outside such countries;
(B) establish consistent policies with respect to
countries that--
(i) are not participating in the common
funding mechanism; and
(ii) do not meet transparency requirements
established under subparagraph (A);
(C) promote harmonized treatment of semiconductors
and verification processes for items being exported to
a country considered a national security risk by a
country participating in the common funding mechanism;
(D) establish consistent policies and common
external policies to address nonmarket economies as the
behavior of such countries pertains to semiconductors;
(E) align policies on supply chain integrity and
semiconductors security, including with respect to
protection and enforcement of intellectual property
rights; and
(F) promote harmonized foreign direct investment
screening measures and export control policies with
respect to semiconductors to align with national,
multilateral, and plurilateral security priorities.
(c) Annual Report to Congress.--Not later than one year after the
date of the enactment of this Act, and annually thereafter for each
fiscal year during which amounts in the Fund are available under
subsection (a)(4), the Secretary of State shall submit to the
appropriate committees of Congress a report on the status of the
implementation of this section that includes a description of--
(1) any commitments made by the governments of countries
that have entered into an arrangement or agreement with the
United States to provide funding for the common funding
mechanism described in subsection (b)(1) and the specific
amount so committed and other cooperative measures being taken
by such countries as part of the common funding mechanism;
(2) the criteria established for expenditure of funds
through the common funding mechanism;
(3) how, and to whom, amounts have been expended from the
Fund and a description of progress made utilizing the Fund to
support the objectives described in subsection (b)(1);
(4) amounts remaining in the Fund;
(5) the progress of the Secretary of State toward entering
into an arrangement or agreement with the governments of
countries that are partners of the United States to participate
in the common funding mechanism and the commitments described
in subsection (b)(2); and
(6) any additional authorities needed to enhance the
effectiveness of the Fund in achieving the security goals of
the United States.
(d) Notifications To Be Provided by the Fund.--
(1) In general.--Not later than 15 days prior to the Fund
making a financial commitment associated with the provision of
expenditures under subsection (a)(4)(A) in an amount in excess
of $1,000,000, the Secretary of State shall submit to the
appropriate committees of Congress a report in writing that
contains the information required by paragraph (2).
(2) Information required.--The information required by this
subsection includes--
(A) the amount of each such expenditure;
(B) an identification of the recipient or
beneficiary; and
(C) a description of the project or activity and
the purpose to be achieved by an expenditure of the
Fund.
(3) Arrangements or agreements.--The Secretary of State
shall notify the appropriate committees of Congress not later
than 30 days after entering into a new bilateral or
multilateral arrangement or agreement described in subsection
(a)(4)(B).
SEC. 7. ADVANCED MICROELECTRONICS RESEARCH AND DEVELOPMENT.
(a) Subcommittee on Microelectronics Leadership.--
(1) Establishment required.--The President shall establish
in the National Science and Technology Council a subcommittee
on matters relating to leadership and competitiveness of the
United States in microelectronics technology and innovation (in
this section referred to as the ``Subcommittee)''.
(2) Membership.--The Subcommittee shall be composed of the
following members:
(A) The Secretary of Defense.
(B) The Secretary of Energy.
(C) The Director of the National Science
Foundation.
(D) The Secretary of Commerce.
(E) The Secretary of State.
(F) The Secretary of Homeland Security.
(G) The United States Trade Representative.
(H) The Director of National Intelligence.
(I) The heads of such other departments and
agencies of the Federal Government as the President
determines appropriate.
(3) Duties.--The duties of the Subcommittee are as follows:
(A) National strategy on microelectronics
research.--
(i) In general.--In consultation with the
advisory committee established in (b), and
other appropriate stakeholders in the
microelectronics industry and academia, the
Subcommittee shall develop a national strategy
on microelectronics research, development,
manufacturing, and supply chain security to--
(I) accelerate the domestic
development and production of
microelectronics and strengthen the
domestic microelectronics workforce;
and
(II) ensure that the United States
is a global leader in the field of
microelectronics research and
development.
(ii) Elements.--The strategy developed
under this subparagraph shall address--
(I) activities that may be carried
out to strengthen engagement and
outreach between the Department of
Defense and industry, academia,
international partners of the United
States, and other departments and
agencies of the Federal Government on
issues relating to microelectronics;
(II) priorities for research and
development to accelerate the
advancement and adoption of innovative
microelectronics and new uses of
microelectronics and components;
(III) the role of diplomacy and
trade in maintaining the position of
the United States as a global leader in
the field of microelectronics;
(IV) the potential role of a
Federal laboratory, center, or
incubator exclusively focused on the
research and development of
microelectronics, as described in
section 231(b)(15) of the National
Defense Authorization Act for Fiscal
Year 2017 (as added by section 276 of
this Act) in carrying out the strategy
and plan required under this
subparagraph; and
(V) such other activities as the
Subcommittee determines may be
appropriate to overcome future
challenges to the innovation,
competitiveness, and supply chain
integrity of the United States in the
field of microelectronics.
(B) Fostering coordination of research and
development.--The Subcommittee shall coordinate
microelectronics related research, development,
manufacturing, and supply chain security activities and
budgets of Federal agencies and ensure such activities
are consistent with the strategy required under
subparagraph (A).
(C) Reporting and updates.--
(i) Progress briefing.--Not later than one
year after the date of the enactment of this
Act, the President shall provide to the
appropriate committees of Congress a briefing
on the progress of the Subcommittee in
developing the strategy required under
subparagraph (A).
(ii) Strategy update.--Not less frequently
than once every 5 years, the Subcommittee shall
update the strategy developed under
subparagraph (A) and submit the revised
strategy to the appropriate committees of
Congress.
(4) Sunset.--The Subcommittee shall terminate on the date
that is 10 years after the date of the enactment of this Act.
(b) Industrial Advisory Committee.--
(1) Establishment.--The Secretary of Commerce, in
consultation with the Secretary of Defense, the Secretary of
Energy, and the Secretary of Homeland Security, shall establish
an advisory committee to be composed of not fewer than 12
members, including representatives of industry, Federal
laboratories, and academic institutions, who are qualified to
provide advice to the United States Government on matters
relating to microelectronics research, development,
manufacturing, and policy.
(2) Duties.--The advisory committee shall assess and
provide guidance to the United States Government on--
(A) science and technology needs of the Nation's
domestic microelectronics industry;
(B) the extent to which the strategy developed
under subsection (a)(3) is helping maintain United
States leadership in microelectronics manufacturing;
(C) assessment of the research and development
programs and activities authorized under this section;
and
(D) opportunities for new public-private
partnerships to advance microelectronics research,
development, and domestic manufacturing.
(3) FACA exemption.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the advisory
committee established under this subsection.
(c) National Semiconductor Technology Center.--
(1) Establishment.--Subject to the availability of
appropriations for such purpose, the Secretary of Commerce, in
collaboration with the Secretary of Defense, shall establish a
national semiconductor technology center to conduct research
and prototyping of advanced semiconductor technology to
strengthen the economic competitiveness and security of the
domestic supply chain. Such center shall be operated as a
public private-sector consortium with participation from the
private sector, the Department of Energy, and the National
Science Foundation.
(2) Functions.--The functions of the center established
under paragraph (1) shall be as follows:
(A) To conduct advanced semiconductor
manufacturing, design and packaging research, and
prototyping that strengthens the entire domestic
ecosystem and is aligned with the strategy required
under subsection (a)(3)(A) with emphasis on the
following:
(i) Semiconductor advanced test, assembly,
and packaging capability in the domestic
ecosystem.
(ii) Materials characterization,
instrumentation and testing for next generation
microelectronics.
(iii) Virtualization and automation of
maintenance of semiconductor machinery.
(iv) Metrology for security and supply
chain verification.
(B) To establish an investment fund, in partnership
with the private sector, to support startups and
collaborations between startups, academia, established
companies, and new ventures, with the goal of
commercializing innovations that contribute to the
domestic semiconductor ecosystem, including--
(i) advanced metrology and characterization
for manufacturing of microchips using 3
nanometer transistor processes or more advanced
processes; and
(ii) metrology for security and supply
chain verification.
(C) To work with the Secretary of Labor, the
Director of the National Science Foundation, the
Secretary of Energy, the private sector, institutions
of higher education, and workforce training entities to
incentivize and expand participation in graduate and
undergraduate programs, and develop workforce training
programs and apprenticeships, in advanced
microelectronic design, research, fabrication, and
packaging capabilities.
(d) National Advanced Packaging Manufacturing Program.--Subject to
the availability of appropriations for such purpose, the Secretary of
Commerce shall establish a National Advanced Packaging Manufacturing
Program led by the Director of the National Institute of Standards and
Technology, in coordination with the national semiconductor technology
center established under subsection (c), to strengthen semiconductor
advanced test, assembly, and packaging capability in the domestic
ecosystem, and which shall coordinate with the Manufacturing USA
institute established under subsection (f), if applicable.
(e) Microelectronics Research at the National Institute of
Standards and Technology.--Subject to the availability of
appropriations for such purpose, the Director of the National Institute
of Standards and Technology shall carry out a microelectronics research
program to enable advances and breakthroughs in measurement science,
standards, material characterization, instrumentation, testing, and
manufacturing capabilities that will accelerate the underlying research
and development for metrology of next generation microelectronics and
ensure the competitiveness and leadership of the United States within
this sector.
(f) Creation of a Manufacturing USA Institute.--Subject to the
availability of appropriations for such purpose, the Director of the
National Institute of Standards and Technology may establish a
Manufacturing USA institute described in section 34(d) of the National
Institute of Standards and Technology Act (15 U.S.C. 278s(d)) that is
focused on semiconductor manufacturing. Such institute may emphasize
the following:
(1) Research to support the virtualization and automation
of maintenance of semiconductor machinery.
(2) Development of new advanced test, assembly, and
packaging capabilities.
(3) Developing and deploying educational and skills
training curricula needed to support the industry sector and
ensure the United States can build and maintain a trusted and
predictable talent pipeline.
(g) Domestic Production Requirements.--The head of any executive
agency receiving funding under this section shall develop policies to
require domestic production, to the extent possible, for any
intellectual property resulting from microelectronics research and
development conducted as a result of such funding and domestic control
requirements to protect any such intellectual property from foreign
adversaries.
SEC. 8. PROHIBITION RELATING TO FOREIGN ENTITIES OF CONCERN.
None of the funds authorized to be appropriated to carry out this
Act may be provided to a foreign entity of concern.
SEC. 9. DEFENSE PRODUCTION ACT OF 1950 EFFORTS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the President shall submit to Congress a report
on a plan of action for any use of authorities available in title III
of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) to
establish or enhance a domestic production capability for
microelectronics technologies and related technologies, subject to--
(1) the availability of appropriations for that purpose;
and
(2) a determination made under the plan pursuant to such
title III that such technologies are essential to the national
defense and that domestic industrial capabilities are
insufficient to meet these needs.
(b) Coordination.--The President shall develop the plan of action
required by subsection (a) in consultation with any relevant head of a
Federal agency, an advisory committee established under section 708(d)
of the Defense Production Act of 1950 (50 U.S.C. 4558(d)), and
appropriate stakeholders in the private sector.
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