II 

116TH CONGRESS 

2D SESSION S. 3933 

To restore American leadership in semiconductor manufacturing by increasing 

Federal incentives in order to enable advanced research and development, 

secure the supply chain, and ensure long-term national security and 

economic competitiveness. 

IN THE SENATE OF THE UNITED STATES 

JUNE 10, 2020 

Mr. CORNYN (for himself, Mr. WARNER, Mr. RISCH, Mr. RUBIO, and Ms. 

SINEMA) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To restore American leadership in semiconductor manufacturing by increasing Federal incentives in order to enable 

advanced research and development, secure the supply 

chain, and ensure long-term national security and economic competitiveness. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Creating Helpful In5 centives to Produce Semiconductors for America Act’’ or 

6 the ‘‘CHIPS for America Act’’. 


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1 SEC. 2. SEMICONDUCTOR INVESTMENT TAX CREDIT. 

2 (a) ESTABLISHMENT OF CREDIT.—Subpart E of part 

3 IV of subchapter A of chapter 1 of the Internal Revenue 

4 Code of 1986 is amended by inserting after section 48C 

5 the following: 

6 ‘‘SEC. 48D. QUALIFYING SEMICONDUCTOR EQUIPMENT 

7 CREDIT. 

8 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

9 qualifying semiconductor equipment credit for any taxable 

10 year is the applicable percentage of— 

11 ‘‘(1) the basis of any qualified semiconductor 

12 equipment placed in service during such taxable 

13 year, 

14 ‘‘(2) any qualified semiconductor manufacturing 

15 facility investment expenditures incurred during 

16 such taxable year, and 

17 ‘‘(3) any expenses incurred by the taxpayer dur18 ing such taxable year with respect to entering into 

19 a lease (including renewal or extension of a lease) 

20 for qualified semiconductor equipment. 

21 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

22 subsection (a), the applicable percentage is— 

23 ‘‘(1) 40 percent in the case of any qualified 

24 semiconductor equipment which is placed in service 

25 before January 1, 2025, or any qualified semicon26 ductor manufacturing facility investment expendiVerDate Sep 11 2014 23:50 Jun 25, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3933.IS S3933

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1 tures or expenses described in subsection (a)(3) 

2 which are incurred before such date, 

3 ‘‘(2) 30 percent in the case of any such equip4 ment which is placed in service, or any such expendi5 tures or expenses which are incurred, after Decem6 ber 31, 2024, and before January 1, 2026, 

7 ‘‘(3) 20 percent in the case of any such equip8 ment which is placed in service, or any such expendi9 tures or expenses which are incurred, after Decem10 ber 31, 2025, and before January 1, 2027, and 

11 ‘‘(4) 0 percent in the case of any such equip12 ment which is placed in service, or any such expendi13 tures or expenses which are incurred, after Decem14 ber 31, 2026. 

15 ‘‘(c) QUALIFIED SEMICONDUCTOR EQUIPMENT.— 

16 For purposes of this section, the term ‘qualified semicon17 ductor equipment’ means any property— 

18 ‘‘(1) which has been identified by the Secretary, 

19 in consultation with the Secretary of Commerce, as 

20 machinery or equipment that is designed and used 

21 to— 

22 ‘‘(A) manufacture or process semiconduc23 tors, or 

24 ‘‘(B) perform research with respect to 

25 semiconductors, 


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1 ‘‘(2) which is placed in service in the United 

2 States by the taxpayer, and 

3 ‘‘(3) with respect to which depreciation (or am4 ortization in lieu of depreciation) is allowable. 

5 ‘‘(d) QUALIFIED SEMICONDUCTOR MANUFACTURING

6 FACILITY INVESTMENT EXPENDITURES.—For purposes 

7 of this section, the term ‘qualified semiconductor manufac8 turing facility investment expenditure’ means any amount 

9 properly chargeable to capital account— 

10 ‘‘(1) for property for which depreciation is al11 lowable under section 168, and 

12 ‘‘(2) in connection with the construction or up13 grading of any facility located in the United States 

14 which substantially operates qualified semiconductor 

15 equipment, including— 

16 ‘‘(A) costs relating to— 

17 ‘‘(i) acquiring or upgrading an exist18 ing building, or 

19 ‘‘(ii) construction of a new building, 

20 and 

21 ‘‘(B) property such as— 

22 ‘‘(i) integrated systems, fixtures, pip23 ing, movable partitions, and lighting, and 

24 ‘‘(ii) any property which has been 

25 identified by the Secretary, in consultation 


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1 with the Secretary of Commerce, as nec2 essary or adapted to— 

3 ‘‘(I) reduce contamination, or 

4 ‘‘(II) control air flow, tempera5 ture, humidity, chemical purity, or 

6 other environmental conditions or 

7 manufacturing tolerances. 

8 ‘‘(e) CERTAIN PROGRESS EXPENDITURE RULES

9 MADE APPLICABLE.—Rules similar to the rules of sub10 sections (c)(4) and (d) of section 46 (as in effect on the 

11 day before the date of the enactment of the Revenue Rec12 onciliation Act of 1990) shall apply for purposes of sub13 section (a). 

14 ‘‘(f) TREATMENT OF CREDIT.—The amount of the 

15 credit determined under this section with respect to any 

16 qualified semiconductor equipment placed in service before 

17 January 1, 2027, or any qualified semiconductor manufac18 turing facility investment expenditures incurred before 

19 such date, shall be treated as a credit allowable under sub20 part C (and not allowable under section 38). 

21 ‘‘(g) DENIAL OF DOUBLE BENEFIT.— 

22 ‘‘(1) REDUCTION OF BASIS.—If a credit is de23 termined under this section with respect to any 

24 property, the basis of such property shall be reduced 

25 by the amount of the credit so determined. 


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1 ‘‘(2) OTHER CREDITS.—No credit shall be al2 lowed under any provision of this chapter with re3 spect to any amount taken in account in determining 

4 the credit allowed to a taxpayer under this section. 

5 ‘‘(h) RULES RELATING TO LEASED PROPERTY.—For 

6 purposes of subsection (a)(3), rules similar to the rules 

7 under section 48(d) (as in effect on the day before the 

8 date of the enactment of the Revenue Reconciliation Act 

9 of 1990) shall apply. 

10 ‘‘(i) DISALLOWANCE.—No credit shall be allowed 

11 under this section with respect to any qualified semicon12 ductor equipment which is used predominantly outside the 

13 United States. 

14 ‘‘(j) PARTNERSHIPS.—In the case of a credit under 

15 subsection (a) which is determined at the partnership 

16 level, with respect to any partner which is exempt from 

17 taxation under section 501(a), such partner may elect to 

18 transfer their distributive share of such credit to any other 

19 partner in the partnership. 

20 ‘‘(k) REGULATIONS.—The Secretary shall prescribe 

21 such regulations or other guidance as may be necessary 

22 to carry out the purposes of this section, including any 

23 such measures as are deemed appropriate to avoid abuse 

24 or fraud with respect to the credit allowed under this sec25 tion.’’. 


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1 (b) TAX ON BASE EROSION PAYMENTS OF TAX2 PAYERS WITH SUBSTANTIAL GROSS RECEIPTS.—Section 

3 59A(b)(1)(B)(ii) of the Internal Revenue Code of 1986 is 

4 amended— 

5 (1) in subclause (II), by striking the period at 

6 the end and inserting ‘‘, plus’’, and 

7 (2) by adding at the end the following: 

8 ‘‘(III) the credit determined 

9 under section 48D for the taxable 

10 year.’’. 

11 (c) INVESTMENT CREDIT.—Section 46 of the Inter12 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

13 at the end of paragraph (5), by striking the period at the 

14 end of paragraph (6) and inserting ‘‘, and’’, and by adding 

15 at the end the following new paragraph: 

16 ‘‘(7) the qualifying semiconductor equipment 

17 credit.’’. 

18 (d) CLERICAL AMENDMENT.—The table of sections 

19 for subpart E of part IV of subchapter A of chapter 1 

20 of the Internal Revenue Code of 1986 is amended by in21 serting after the item relating to section 48C the following 

22 new item: 

‘‘Sec. 48D. Qualifying semiconductor equipment credit.’’. 

23 (e) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to any qualified semiconductor 

25 equipment (as defined in subsection (c) of section 48D) 


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1 placed in service after the date of enactment of this Act, 

2 or any qualified semiconductor manufacturing facility in3 vestment expenditure (as defined in subsection (d) of such 

4 section) incurred after such date. 

5 SEC. 3. BUILDING UNITED STATES CAPACITY FOR VERI6 FICATION AND MANUFACTURING OF AD7 VANCED MICROELECTRONICS. 

8 (a) PROGRAM.—The Secretary of Commerce, acting 

9 through the Director of the National Institute of Stand10 ards and Technology, shall carry out a program of re11 search and development investment to enable advances 

12 and breakthroughs in measurement science, standards, 

13 material characterization, instrumentation, testing, and 

14 manufacturing capabilities that will accelerate the under15 lying research and development for design, development, 

16 and manufacturability of next generation microelectronics 

17 and ensure the competitiveness and leadership of the 

18 United States within this sector. 

19 (b) COMPONENTS.—The program required by sub20 section (a) shall cover the following: 

21 (1) Advanced metrology and characterization 

22 for manufacturing of microchips using 3 nanometer 

23 transistor processes or more advanced processes. 

24 (2) Metrology for security and supply chain 

25 verification. 


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1 (3) Creation of a Manufacturing USA institute 

2 described in section 34(d) of the National Institute 

3 of Standards and Technology Act (15 U.S.C. 

4 278s(d)) that is focused on semiconductor manufac5 turing. Such institute may emphasize the following: 

6 (A) Research to support the virtualization 

7 and automation of maintenance of semicon8 ductor machinery. 

9 (B) Development of new advanced test, as10 sembly and packaging capabilities. 

11 (C) Developing and deploying educational 

12 and skills training curricula needed to support 

13 the industry sector and ensure the U.S. can 

14 build and maintain a trusted and predictable 

15 talent pipeline. 

16 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to the Secretary 

18 amounts as follows: 

19 (1) To carry out subsection (b)(1), $10,000,000 

20 for each of fiscal years 2021 through 2025. 

21 (2) To carry out subsection (b)(2), $10,000,000 

22 for each of fiscal years 2021 through 2025. 

23 (3) To carry out subsection (b)(3), $30,000,000 

24 for each of fiscal years 2021 through 2025. 


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1 SEC. 4. FEDERAL GRANTS TO MATCH STATE INCENTIVES. 

2 (a) DEFINITIONS.—In this section— 

3 (1) the term ‘‘appropriate committees of Con4 gress’’ means— 

5 (A) the Select Committee on Intelligence, 

6 the Committee on Commerce, Science, and 

7 Transportation, the Committee on Foreign Re8 lations, the Committee on Armed Services, and 

9 the Committee on Homeland Security and Gov10 ernmental Affairs of the Senate; and 

11 (B) the Permanent Select Committee on 

12 Intelligence, the Committee on Energy and 

13 Commerce, the Committee on Foreign Affairs, 

14 the Committee on Armed Services, the Com15 mittee on Science, Space, and Technology, and 

16 the Committee on Homeland Security of the 

17 House of Representatives; 

18 (2) the term ‘‘covered incentive’’— 

19 (A) means an incentive offered by a gov20 ernmental entity to a private entity for the pur21 poses of building within the jurisdiction of the 

22 governmental entity a fabrication (or other es23 sential) facility relating to the manufacturing of 

24 semiconductors; and 

25 (B) includes any tax incentive (such as an 

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1 ment or payroll taxes or a tax abatement with 

2 respect to personal or real property), a work3 force-related incentive (including a grant agree4 ment relating to workforce training or voca5 tional education), any concession with respect 

6 to real property, and any other incentive deter7 mined appropriate by the Secretary, in con8 sultation with the Secretary of State; 

9 (3) the term ‘‘governmental entity’’ means a 

10 State or local government; and 

11 (4) the term ‘‘Secretary’’ means the Secretary 

12 of Commerce. 

13 (b) GRANTS.— 

14 (1) IN GENERAL.—The Secretary shall establish 

15 in the Department of Commerce a program that, in 

16 accordance with the requirements of this section, 

17 provides grants to governmental entities that offer 

18 covered incentives. 

19 (2) PROCEDURE.— 

20 (A) IN GENERAL.—A governmental entity 

21 that offers a covered incentive and that desires 

22 to receive a grant under this subsection shall 

23 submit to the Secretary an application that de24 scribes the covered incentive offered by the gov25 ernmental entity. 


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1 (B) CONDITIONS FOR APPROVAL.—The 

2 Secretary shall approve an application sub3 mitted by a governmental entity under subpara4 graph (A)— 

5 (i) upon confirmation by the Secretary 

6 that the private entity to which the govern7 mental entity has offered the covered in8 centive to which the application relates has 

9 agreed to build in the applicable jurisdic10 tion a facility described in subsection 

11 (a)(2)(A); and 

12 (ii) if the Secretary determines that 

13 building the facility described in clause (i) 

14 is in the interest of the United States. 

15 (3) AMOUNT.—The amount of a grant provided 

16 by the Secretary to a governmental entity under this 

17 subsection shall be in an amount that is not less 

18 than the value of the applicable covered incentive of19 fered by the governmental entity, as determined by 

20 the Secretary. 

21 (4) CLAWBACK.—The Secretary shall recover 

22 the full amount of a grant made to a governmental 

23 entity under this subsection with respect to a cov24 ered incentive offered by the governmental entity 

25 if— 


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1 (A) as of the date that is 5 years after the 

2 date on which the Secretary makes the grant, 

3 the facility to which the covered incentive re4 lates has not been completed; or 

5 (B) during the term of the grant, the pri6 vate entity to which the covered incentive was 

7 offered engages in any joint research or tech8 nology licensing effort— 

9 (i) with the Government of the Peo10 ple’s Republic of China, the Government of 

11 the Russian Federation, the Government of 

12 Iran, or the Government of North Korea; 

13 and 

14 (ii) that relates to a sensitive tech15 nology or product, as determined by the 

16 Secretary. 

17 (c) CONSULTATION AND COORDINATION RE18 QUIRED.—In carrying out the program established under 

19 subsection (b), the Secretary shall consult and coordinate 

20 with the Secretary of State. 

21 (d) GAO REVIEWS.—The Comptroller General of the 

22 United States shall— 

23 (1) not later than 2 years after the date of en24 actment of this Act, and biennially thereafter until 

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1 ment, conduct a review of the program established 

2 under subsection (b), which shall include a deter3 mination of the number of grants made under that 

4 program during the period covered by the review 

5 that failed to comply with a requirement under this 

6 section; and 

7 (2) submit to the appropriate committees of 

8 Congress the results of each review conducted under 

9 paragraph (1). 

10 (e) TRUST FUND.— 

11 (1) ESTABLISHMENT.—There is established in 

12 the Treasury of the United States a trust fund (re13 ferred to in this subsection as the ‘‘Trust Fund’’), 

14 consisting of amounts transferred to the Trust Fund 

15 under paragraph (2) and any amounts that may be 

16 credited to the Trust Fund under paragraph (3). 

17 (2) TRANSFER OF AMOUNTS.— 

18 (A) IN GENERAL.—Subject to subpara19 graph (B), the Secretary of the Treasury shall 

20 transfer to the Trust Fund, from the general 

21 fund of the Treasury, for fiscal year 2021 and 

22 each fiscal year thereafter, an amount equiva23 lent to the amount received into the general 

24 fund during that fiscal year and attributable to 


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1 duties imposed under section 301 of the Trade 

2 Act of 1974 (19 U.S.C. 2411). 

3 (B) LIMITATIONS.— 

4 (i) LIMITATION ON TRANSFERS.—The 

5 amount transferred to the Trust Fund 

6 under subparagraph (A) in a fiscal year 

7 may not exceed $10,000,000,000. 

8 (ii) LIMITATION ON TOTAL BAL9 ANCE.—The total amount in the Trust 

10 Fund at any one time may not exceed 

11 $10,000,000,000. 

12 (C) FREQUENCY OF TRANSFERS.—The 

13 Secretary shall transfer amounts required to be 

14 transferred to the Trust Fund under this para15 graph not less frequently than quarterly from 

16 the general fund of the Treasury to the Trust 

17 Fund. 

18 (3) INVESTMENT OF AMOUNTS.— 

19 (A) INVESTMENT OF AMOUNTS.—The Sec20 retary shall invest such portion of the Trust 

21 Fund as is not required to meet current with22 drawals in interest-bearing obligations of the 

23 United States or in obligations guaranteed as to 

24 both principal and interest by the United 

25 States. 


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1 (B) INTEREST AND PROCEEDS.—The in2 terest on, and the proceeds from the sale or re3 demption of, any obligations held in the Trust 

4 Fund shall be credited to and form a part of 

5 the Trust Fund. 

6 (4) AVAILABILITY OF AMOUNTS IN TRUST

7 FUND.—Amounts in the Trust Fund shall be avail8 able, as provided in advance in an appropriations 

9 Act, to the Secretary to make grants under this sec10 tion. 

11 SEC. 5. DEPARTMENT OF DEFENSE SUPPORT FOR SEMI12 CONDUCTOR TECHNOLOGIES AND RELATED 

13 TECHNOLOGIES. 

14 (a) RDT&E AND WORKFORCE TRAINING EF15 FORTS.— 

16 (1) IN GENERAL.—The Secretary of Defense 

17 shall, in consultation with the Secretary of Com18 merce and the Secretary of Labor, establish and im19 plement a priority in the use of amounts available to 

20 the Department of Defense for research, develop21 ment, test, and evaluation, and for workforce train22 ing, for programs, projects, and activities in connec23 tion with semiconductor technologies and related 

24 technologies. 


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1 (2) DISCHARGE.—The Secretary of Defense 

2 shall carry out paragraph (1) through the Office of 

3 the Under Secretary of Defense for Research and 

4 Engineering or such other component of the Depart5 ment of Defense as the Secretary considers appro6 priate. 

7 (3) FUNDING.—Of the amount authorized to be 

8 appropriated for each fiscal year for the Department 

9 of Defense for research, development, test, and eval10 uation, not less the $50,000,000 shall be available in 

11 such fiscal year for programs, projects, and activities 

12 described in paragraph (1) in furtherance of the pri13 ority required by that paragraph. 

14 (b) DPA EFFORTS.— 

15 (1) IN GENERAL.—Not later than 120 days 

16 after the date of the enactment of this Act, the 

17 President shall submit to Congress a report on, and 

18 shall commence implementation of, a plan for use by 

19 the Department of Defense of authorities available 

20 in title III of the Defense Production Act of 1950 

21 (50 U.S.C. 4531 et seq.) to establish and enhance 

22 a domestic production capability for semiconductor 

23 technologies and related technologies, if funding is 

24 available for that purpose. 


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1 (2) CONSULTATION.—The President shall de2 velop the plan required by paragraph (1) in con3 sultation with the Secretary of Defense, the Sec4 retary of State, the Secretary of Commerce, and ap5 propriate stakeholders in the private sector. 

6 SEC. 6. DEPARTMENT OF COMMERCE STUDY ON STATUS OF 

7 SEMICONDUCTOR TECHNOLOGIES IN THE 

8 UNITED STATES INDUSTRIAL BASE. 

9 (a) IN GENERAL.—Commencing not later than 90 

10 days after the date of the enactment of this Act, the Sec11 retary of Commerce shall undertake a survey, using au12 thorities in section 705 of the Defense Production Act (50 

13 U.S.C. 4555), to assess the capabilities of the United 

14 States industrial base to support the national defense in 

15 light of the global nature of the supply chain and signifi16 cant interdependencies between the United States indus17 trial base and the industrial base of foreign countries with 

18 respect to the manufacture and design of semiconductors. 

19 (b) RESPONSE TO SURVEY.—The Secretary shall en20 sure compliance with the survey from among all relevant 

21 potential respondents, including the following: 

22 (1) Corporations, partnerships, associations, or 

23 any other organized groups domiciled and with sub24 stantial operations in the United States. 


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1 (2) Corporations, partnerships, associations, or 

2 any other organized groups domiciled in the United 

3 States with operations outside the United States. 

4 (3) Foreign domiciled corporations, partner5 ships, associations, or any other organized groups 

6 with substantial operations or business presence in, 

7 or substantial revenues derived from, the United 

8 States. 

9 (4) Foreign domiciled corporations, partner10 ships, associations, or any other organized groups in 

11 defense treaty or assistance countries where the pro12 duction of the entity concerned involves critical tech13 nologies covered by section 3. 

14 (c) INFORMATION REQUESTED.—The information 

15 sought from a responding entity pursuant to the survey 

16 required by subsection (a) shall include, at minimum, in17 formation on the following with respect to the manufac18 ture or design of semiconductors by such entity: 

19 (1) An identification of the geographic scope of 

20 operations. 

21 (2) Information on relevant cost structures. 

22 (3) An identification of types of semiconductor 

23 equipment in operation at such entity. 


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1 (4) An identification of all relevant raw mate2 rials and semi-finished goods and components 

3 sourced domestically and abroad by such entity. 

4 (5) Specifications of the semiconductors manu5 factured or designed by such entity, descriptions of 

6 the end-uses of such semiconductors, and a descrip7 tion of any technical support provided to end-users 

8 of such semiconductors by such entity. 

9 (6) Information on domestic and export market 

10 sales by such entity. 

11 (7) Information on the financial performance, 

12 including income and expenditures, of such entity. 

13 (8) A list of all foreign and domestic subsidies, 

14 and any other financial incentives, received by such 

15 entity in each market in which such entity operates. 

16 (9) A list of information requests from the Peo17 ple’s Republic of China to such entity, and a de18 scription of the nature of each request and the type 

19 of information provided. 

20 (10) Information on any joint ventures, tech21 nology licensing agreements, and cooperative re22 search or production arrangements of such entity. 

23 (11) A description of efforts by such entity to 

24 evaluate and control supply chain risks it faces. 


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1 (12) A list and description of any sales, licens2 ing agreements, or partnerships between such entity 

3 and the People’s Liberation Army or People’s Armed 

4 Police, including any business relationships with en5 tities through which such sales, licensing agree6 ments, or partnerships may occur. 

7 SEC. 7. FUNDING FOR DEVELOPMENT AND ADOPTION OF 

8 SECURE MICROELECTRONICS AND SECURE 

9 MICROELECTRONICS SUPPLY CHAINS. 

10 (a) MULTILATERAL MICROELECTRONICS SECURITY

11 FUND.— 

12 (1) ESTABLISHMENT OF FUND.—There is es13 tablished in the Treasury of the United States a 

14 trust fund, to be known as the ‘‘Multilateral Micro15 electronics Security Fund’’ (in this section referred 

16 to as the ‘‘Fund’’), consisting of amounts deposited 

17 into the Trust Fund under paragraph (2) and any 

18 amounts that may be credited to the Trust Fund 

19 under paragraph (3). 

20 (2) AUTHORIZATION OF APPROPRIATIONS.— 

21 There are authorized to be appropriated 

22 $750,000,000 to be deposited in the Fund. 

23 (3) INVESTMENT OF AMOUNTS.— 

24 (A) INVESTMENT OF AMOUNTS.—The Sec25 retary of the Treasury shall invest such portion 


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1 of the Fund as is not required to meet current 

2 withdrawals in interest-bearing obligations of 

3 the United States or in obligations guaranteed 

4 as to both principal and interest by the United 

5 States. 

6 (B) INTEREST AND PROCEEDS.—The in7 terest on, and the proceeds from the sale or re8 demption of, any obligations held in the Fund 

9 shall be credited to and form a part of the 

10 Fund. 

11 (4) USE OF FUND.— 

12 (A) IN GENERAL.—Subject to subpara13 graph (B), amounts in the Fund shall be avail14 able, as provided in advance in an appropria15 tions Act, to the Secretary of State— 

16 (i) to provide funding through the 

17 common funding mechanism described in 

18 subsection (b)(1) to support the develop19 ment and adoption of secure microelec20 tronics and secure microelectronics supply 

21 chains; and 

22 (ii) to otherwise carry out this section. 

23 (B) AVAILABILITY CONTINGENT ON INTER24 NATIONAL AGREEMENT.—Amounts in the Fund 

25 shall be available to the Secretary of State on 


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1 and after the date on which the Secretary en2 ters into an agreement with the governments of 

3 countries that are partners of the United States 

4 to participate in the common funding mecha5 nism under paragraph (1) of subsection (b) and 

6 the commitments described in paragraph (2) of 

7 that subsection. 

8 (5) AVAILABILITY OF AMOUNTS.— 

9 (A) IN GENERAL.—Amounts in the Fund 

10 shall remain available through the end of the 

11 tenth fiscal year beginning after the date of the 

12 enactment of this Act. 

13 (B) REMAINDER TO TREASURY.—Any 

14 amounts remaining in the Fund after the end 

15 of the fiscal year described in subparagraph (A) 

16 shall be deposited in the general fund of the 

17 Treasury. 

18 (b) COMMON FUNDING MECHANISM FOR DEVELOP19 MENT AND ADOPTION OF SECURE MICROELECTRONICS

20 AND SECURE MICROELECTRONICS SUPPLY CHAINS.— 

21 (1) IN GENERAL.—The Secretary of State, in 

22 consultation with the Secretary of Commerce, the 

23 Secretary of Defense, the Secretary of Homeland Se24 curity, the Secretary of the Treasury, and the Direc25 tor of National Intelligence, shall seek to establish a 


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1 common funding mechanism, in coordination with 

2 the governments of countries that are partners of 

3 the United States, that uses amounts from the 

4 Fund, and amounts committed by such governments, 

5 to support the development and adoption of secure 

6 microelectronics and secure microelectronics supply 

7 chains. 

8 (2) MUTUAL COMMITMENTS.—The Secretary of 

9 State, in consultation with the United States Trade 

10 Representative and the Secretary of Commerce, shall 

11 seek to negotiate a set of mutual commitments with 

12 the governments of countries that are partners of 

13 the United States upon which to condition any ex14 penditure of funds pursuant to the common funding 

15 mechanism described in paragraph (1). Such com16 mitments shall, at a minimum— 

17 (A) establish transparency requirements 

18 for any subsidies or other financial benefits (in19 cluding revenue foregone) provided to microelec20 tronics firms located in or outside such coun21 tries; 

22 (B) establish consistent policies with re23 spect to countries that— 

24 (i) are not participating in the com25 mon funding mechanism; and 


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1 (ii) do not meet transparency require2 ments established under subparagraph (A); 

3 (C) promote harmonized treatment of 

4 microelectronics and verification processes for 

5 items being exported to a country considered a 

6 national security risk by a country participating 

7 in the common funding mechanism; 

8 (D) establish consistent policies and com9 mon external policies to address nonmarket 

10 economies as the behavior of such countries 

11 pertains to microelectronics; and 

12 (E) align policies on supply chain integrity 

13 and microelectronics security. 

14 (c) ANNUAL REPORT TO CONGRESS.—Not later than 

15 one year after the date of the enactment of this Act, and 

16 annually thereafter for each fiscal year during which 

17 amounts in the Fund are available under subsection 

18 (a)(3), the Secretary of State shall submit to Congress a 

19 report on the status of the implementation of this section 

20 that includes a description of— 

21 (1) any commitments made by the governments 

22 of countries that are partners of the United States 

23 to providing funding for the common funding mecha24 nism described in subsection (b)(1) and the specific 

25 amount so committed; 


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1 (2) the criteria established for expenditure of 

2 funds through the common funding mechanism; 

3 (3) how, and to whom, amounts have been ex4 pended from the Fund; 

5 (4) amounts remaining in the Fund; 

6 (5) the progress of the Secretary of State to7 ward entering into an agreement with the govern8 ments of countries that are partners of the United 

9 States to participate in the common funding mecha10 nism and the commitments described in subsection 

11 (b)(2); and 

12 (6) any additional authorities needed to en13 hance the effectiveness of the Fund in achieving the 

14 security goals of the United States. 

15 SEC. 8. ADVANCED SEMICONDUCTOR RESEARCH AND DE16 SIGN. 

17 (a) APPROPRIATE COMMITTEES OF CONGRESS.—In 

18 this section, the term ‘‘appropriate committees of Con19 gress’’ means— 

20 (1) the Select Committee on Intelligence, the 

21 Committee on Commerce, Science, and Transpor22 tation, the Committee on Foreign Relations, the 

23 Committee on Armed Services, and the Committee 

24 on Homeland Security and Governmental Affairs of 

25 the Senate; and 


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1 (2) the Permanent Select Committee on Intel2 ligence, the Committee on Energy and Commerce, 

3 the Committee on Foreign Affairs, the Committee 

4 on Armed Services, the Committee on Science, 

5 Space, and Technology, and the Committee on 

6 Homeland Security of the House of Representatives. 

7 (b) SENSE OF CONGRESS.—It is the sense of Con8 gress that the leadership of the United States in semicon9 ductor technology and innovation is critical to the eco10 nomic growth and national security of the United States. 

11 (c) SUBCOMMITTEE ON SEMICONDUCTOR LEADER12 SHIP.— 

13 (1) ESTABLISHMENT REQUIRED.—The Presi14 dent shall establish in the National Science and 

15 Technology Council a subcommittee on matters re16 lating to leadership of the United States in semicon17 ductor technology and innovation. 

18 (2) DUTIES.—The duties of the subcommittee 

19 established under paragraph (1) are as follows: 

20 (A) NATIONAL STRATEGY ON SEMICON21 DUCTOR RESEARCH.— 

22 (i) DEVELOPMENT.—In coordination 

23 with the Secretary of Defense, the Sec24 retary of Energy, the Secretary of State, 

25 the Secretary of Commerce, the National 


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1 Science Foundation, and the Director of 

2 the National Institute of Standards and 

3 Technology and in consultation with the 

4 semiconductor industry and academia, de5 velop a national strategy on semiconductor 

6 research, including guidance for the fund7 ing of research. 

8 (ii) REPORTING AND UPDATES.—Not 

9 less frequently than once every 5 years, to 

10 update the strategy developed under clause 

11 (i) and to submit the revised strategy to 

12 the appropriate committees of Congress. 

13 (B) FOSTERING COORDINATION OF RE14 SEARCH AND DEVELOPMENT.—To foster the co15 ordination of semiconductor research and devel16 opment. 

17 (d) ADVANCED PACKAGING NATIONAL MANUFAC18 TURING INSTITUTE.— 

19 (1) AUTHORIZATION.—The Secretary of Com20 merce may, in coordination with the private sector, 

21 establish in the Department of Commerce an insti22 tute on advanced packaging and manufacturing. 

23 (2) FUNCTIONS.—The functions of the institute 

24 established under paragraph (1) shall be as follows: 


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1 (A) To establish United States leadership 

2 in advanced microelectronic packaging. 

3 (B) To promote standards development for 

4 such packaging. 

5 (C) To foster public-private partnerships 

6 relevant to such packaging. 

7 (D) To develop research and development 

8 programs to advance technology development 

9 relevant to such packaging. 

10 (E) To establish an investment fund— 

11 (i) to support a startup domestic ad12 vanced microelectronic packaging eco13 system; 

14 (ii) to accelerate technology transfer; 

15 and 

16 (iii) to ensure domestic supply chains; 

17 and 

18 (F) to work with the Secretary of Labor 

19 and the private sector to develop workforce 

20 training programs and apprenticeships in ad21 vanced microelectronic packaging capabilities. 

22 (e) AUTHORIZATIONS OF APPROPRIATIONS.— 

23 (1) NATIONAL SEMICONDUCTOR TECHNOLOGY

24 CENTER.—There is authorized to be appropriated to 

25 establish a national semiconductor technology center 


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1 to conduct research and prototyping of advance 

2 semiconductors with participation of the private sec3 tor, the Secretary of Defense, the Secretary of En4 ergy, the National Science Foundation, and the Di5 rector of the National Institute of Standards and 

6 Technology, $3,000,000,000 for fiscal year 2021, 

7 with such amount to remain available for such pur8 pose through fiscal year 2030. 

9 (2) ELECTRONICS RESURGENCE INITIATIVE.— 

10 There is authorized to be appropriated to carry out 

11 the Electronics Resurgence Initiative of the Defense 

12 Advanced Research Projects Agency, 

13 $2,000,000,000 for fiscal year 2021, with such 

14 amount to remain available for such purpose 

15 through fiscal year 2025. 

16 (3) SEMICONDUCTOR BASIC RESEARCH AT NA17 TIONAL SCIENCE FOUNDATION.—There is authorized 

18 to be appropriated to carry out programs at the Na19 tional Science Foundation on semiconductor basic 

20 research, $3,000,000,000 for fiscal year 2021, with 

21 such amount to remain available for such purpose 

22 through fiscal year 2025. 

23 (4) SEMICONDUCTOR BASIC RESEARCH AT DE24 PARTMENT OF ENERGY.—There is authorized to be 

25 appropriated to carry out programs at the DepartVerDate Sep 11 2014 21:06 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S3933.IS S3933

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1 ment of Energy on semiconductor basic research, 

2 $2,000,000,000 for fiscal year 2021, with such 

3 amount to remain available for such purpose 

4 through fiscal year 2025. 

5 (5) ADVANCED PACKAGING NATIONAL MANU6 FACTURING INSTITUTE.—There is authorized to be 

7 appropriated to carry out subsection (d), 

8 $5,000,000,000 for fiscal year 2021, with such 

9 amount to remain available for such purpose 

10 through fiscal year 2025— 

11 (A) of which, $500,000,000 shall be avail12 able to carry out paragraph (2)(D) of such sub13 section; and 

14 (B) of which, $500,000,000 shall be avail15 able to carry out paragraph (2)(E) of such sub16 section. 

Æ 


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