II 

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. 

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 for Producing Semiconductors for America and 

6 Foundries Act’’. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 

9 (1) The term ‘‘appropriate committees of Con10 gress’’ means— 


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1 (A) the Select Committee on Intelligence, 

2 the Committee on Energy and Natural Re3 sources, the Committee on Commerce, Science, 

4 and Transportation, the Committee on Foreign 

5 Relations, the Committee on Armed Services, 

6 the Committee on Appropriations, the Com7 mittee on Banking, Housing, and Urban Af8 fairs, the Committee on Homeland Security and 

9 Governmental Affairs, and the Committee on 

10 Finance 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, the 

16 Committee on Appropriations, the Committee 

17 on Financial Services, the Committee on Home18 land Security, and the Committee on Ways and 

19 Means of the House of Representatives. 

20 (2) The term ‘‘covered entity’’ means a private 

21 entity, a consortium of private entities, or a consor22 tium of public and private entities with a dem23 onstrated ability to substantially finance, construct, 

24 expand, or modernize a facility relating to fabricaVerDate Sep 11 2014 23:56 Dec 13, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4982.IS S4982

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1 tion, assembly, testing, advanced packaging, or re2 search and development of semiconductors. 

3 (3) The term ‘‘covered incentive’’— 

4 (A) means an incentive offered by a gov5 ernmental entity to a covered entity for the pur6 poses of constructing within the jurisdiction of 

7 the governmental entity, or expanding or mod8 ernizing an existing facility within that jurisdic9 tion, a facility described in paragraph (2); and 

10 (B) a workforce-related incentive (includ11 ing a grant agreement relating to workforce 

12 training or vocational education), any conces13 sion with respect to real property, funding for 

14 research and development with respect to semi15 conductors, and any other incentive determined 

16 appropriate by the Secretary, in consultation 

17 with the Secretary of State. 

18 (4) The term ‘‘person’’ includes an individual, 

19 partnership, association, corporation, organization, 

20 or any other combination of individuals. 

21 (5) The term ‘‘foreign entity’’— 

22 (A) means— 

23 (i) a government of a foreign country 

24 and a foreign political party; 


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1 (ii) a natural person who is not a law2 ful permanent resident of the United 

3 States, citizen of the United States, or any 

4 other protected individual (as such term is 

5 defined in section 274B(a)(3) of the Immi6 gration and Nationality Act (8 U.S.C. 

7 1324b(a)(3))); or 

8 (iii) a partnership, association, cor9 poration, organization, or other combina10 tion of persons organized under the laws of 

11 or having its principal place of business in 

12 a foreign country; and 

13 (B) includes— 

14 (i) any person owned by, controlled 

15 by, or subject to the jurisdiction or direc16 tion of an entity listed in subparagraph 

17 (A); 

18 (ii) any person, wherever located, who 

19 acts as an agent, representative, or em20 ployee of an entity listed in subparagraph 

21 (A); 

22 (iii) any person who acts in any other 

23 capacity at the order, request, or under the 

24 direction or control, of an entity listed in 

25 subparagraph (A), or of a person whose 


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1 activities are directly or indirectly super2 vised, directed, controlled, financed, or 

3 subsidized in whole or in majority part by 

4 an entity listed in subparagraph (A); 

5 (iv) any person who directly or indi6 rectly through any contract, arrangement, 

7 understanding, relationship, or otherwise, 

8 owns 25 percent or more of the equity in9 terests of an entity listed in subparagraph 

10 (A); 

11 (v) any person with significant re12 sponsibility to control, manage, or direct 

13 an entity listed in subparagraph (A); 

14 (vi) any person, wherever located, who 

15 is a citizen or resident of a country con16 trolled by an entity listed in subparagraph 

17 (A); or 

18 (vii) any corporation, partnership, as19 sociation, or other organization organized 

20 under the laws of a country controlled by 

21 an entity listed in subparagraph (A). 

22 (6) The term ‘‘foreign entity of concern’’ means 

23 any foreign entity that is— 

24 (A) designated as a foreign terrorist orga25 nization by the Secretary of State under section 


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1 219 of the Immigration and Nationality Act (8 

2 U.S.C. 1189); 

3 (B) included on the list of specially des4 ignated nationals and blocked persons main5 tained by the Office of Foreign Assets Control 

6 of the Department of the Treasury; 

7 (C) owned by, controlled by, or subject to 

8 the jurisdiction or direction of a government of 

9 a foreign country that is listed in section 2533c 

10 of title 10, United States Code; or 

11 (D) alleged by the Attorney General to 

12 have been involved in activities for which a con13 viction was obtained under— 

14 (i) chapter 37 of title 18, United 

15 States Code (commonly known as the ‘‘Es16 pionage Act’’) (18 U.S.C. 792 et seq.); 

17 (ii) section 951 or 1030 of title 18, 

18 United States Code; 

19 (iii) chapter 90 of title 18, United 

20 States Code (commonly known as the 

21 ‘‘Economic Espionage Act of 1996’’); 

22 (iv) the Arms Export Control Act (22 

23 U.S.C. 2751 et seq.); 


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1 (v) section 224, 225, 226, 227, or 236 

2 of the Atomic Energy Act of 1954 (42 

3 U.S.C. 2274–2278; 2284); 

4 (vi) the Export Control Reform Act of 

5 2018 (50 U.S.C. 4801 et seq.); or 

6 (vii) the International Economic 

7 Emergency Powers Act (50 U.S.C. 1701 et 

8 seq.); or 

9 (E) determined by the Secretary, in con10 sultation with the Secretary of Defense and the 

11 Director of National Intelligence, to be engaged 

12 in unauthorized conduct that is detrimental to 

13 the national security or foreign policy of the 

14 United States under this Act. 

15 (7) The term ‘‘governmental entity’’ means a 

16 State or local government. 

17 (8) The term ‘‘Secretary’’ means the Secretary 

18 of Commerce. 

19 (9) The term ‘‘semiconductor’’ has the meaning 

20 given that term by the Secretary. 

21 SEC. 3. SEMICONDUCTOR INCENTIVES. 

22 (a) FINANCIAL ASSISTANCE PROGRAM.— 

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

24 in the Department of Commerce a program that, in 

25 accordance with the requirements of this section and 


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1 subject to the availability of appropriations for such 

2 purposes, provides Federal financial assistance to 

3 covered entities to incentivize investment in facilities 

4 and equipment in the United States for semicon5 ductor fabrication, assembly, testing, advanced pack6 aging, or research and development. 

7 (2) PROCEDURE.— 

8 (A) IN GENERAL.—A covered entity shall 

9 submit to the Secretary an application that de10 scribes the project for which the covered entity 

11 is seeking financial assistance under this sec12 tion. 

13 (B) ELIGIBILITY.—In order for a covered 

14 entity to qualify for financial assistance under 

15 this section, the covered entity shall dem16 onstrate to the Secretary, in the application 

17 submitted by the covered entity under subpara18 graph (A), that— 

19 (i) the covered entity has a docu20 mented interest in constructing, expanding, 

21 or modernizing a facility described in para22 graph (1); and 

23 (ii) with respect to the project de24 scribed in clause (i), the covered entity 

25 has— 


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1 (I) been offered a covered incen2 tive; 

3 (II) made commitments to work4 er and community investment, includ5 ing through— 

6 (aa) training and education 

7 benefits paid by the covered enti8 ty; and 

9 (bb) programs to expand 

10 employment opportunity for eco11 nomically disadvantaged individ12 uals; 

13 (III) secured commitments from 

14 regional educational and training enti15 ties and institutions of higher edu16 cation to provide workforce training, 

17 including programming for training 

18 and job placement of economically dis19 advantaged individuals; and 

20 (IV) an executable plan to sus21 tain the facility described in clause (i) 

22 without additional Federal financial 

23 assistance under this subsection for 

24 facility support. 


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1 (C) CONSIDERATIONS FOR REVIEW.—With 

2 respect to the review by the Secretary of an ap3 plication submitted by a covered entity under 

4 subparagraph (A)— 

5 (i) the Secretary may not approve the 

6 application unless the Secretary— 

7 (I) confirms that the covered en8 tity has satisfied the eligibility criteria 

9 under subparagraph (B); 

10 (II) determines that the project 

11 to which the application relates is in 

12 the interest of the United States; and 

13 (III) has notified the appropriate 

14 committees of Congress not later than 

15 15 days before making any commit16 ment to provide a grant to any cov17 ered entity that exceeds $10,000,000; 

18 and 

19 (ii) the Secretary may consider wheth20 er— 

21 (I) the covered entity has pre22 viously received financial assistance 

23 made under this subsection; 

24 (II) the governmental entity of25 fering the applicable covered incentive 


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1 has benefitted from financial assist2 ance previously provided under this 

3 subsection; 

4 (III) the covered entity has dem5 onstrated that they are responsive to 

6 the national security needs or require7 ments established by the Intelligence 

8 Community (or an agency thereof), 

9 the National Nuclear Security Admin10 istration, or the Department of De11 fense; and 

12 (IV) when practicable, a consor13 tium that is considered a covered enti14 ty includes a small business concern, 

15 as defined under section 3 of the 

16 Small Business Act (15 U.S.C. 632), 

17 notwithstanding section 121.103 of 

18 title 13, Code of Federal Regulations; 

19 and 

20 (iii) the Secretary may not approve an 

21 application if the Secretary determines 

22 that the covered entity is a foreign entity 

23 of concern. 

24 (D) RECORDS.—The Secretary may re25 quest records and information from the appliVerDate Sep 11 2014 05:16 Dec 12, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4982.IS S4982

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1 cant to review the status of a covered entity. 

2 The applicant shall provide the records and in3 formation requested by the Secretary. 

4 (3) AMOUNT.— 

5 (A) IN GENERAL.—The Secretary shall de6 termine the appropriate amount and funding 

7 type for each financial assistance award made 

8 to a covered entity under this subsection. 

9 (B) LARGER INVESTMENT.—Federal in10 vestment in any individual project shall not ex11 ceed $3,000,000,000 unless the Secretary, in 

12 consultation with the Secretary of Defense and 

13 the Director of National Intelligence, rec14 ommends to the President, and the President 

15 certifies and reports to the appropriate commit16 tees of Congress, that a larger investment is 

17 necessary to— 

18 (i) significantly increase the propor19 tion of reliable domestic supply of semi20 conductors relevant for national security 

21 and economic competitiveness that can be 

22 met through domestic production; and 

23 (ii) meet the needs of national secu24 rity. 


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1 (4) USE OF FUNDS.—A covered entity that re2 ceives a financial assistance award under this sub3 section may only use the financial assistance award 

4 amounts to— 

5 (A) finance the construction, expansion, or 

6 modernization of a facility or equipment to be 

7 used for semiconductors described in paragraph 

8 (1), as documented in the application submitted 

9 by the covered entity under paragraph (2)(B), 

10 as determined necessary by the Secretary for 

11 purposes relating to the national security and 

12 economic competitiveness of the United States; 

13 (B) support workforce development for a 

14 facility described in subparagraph (A); 

15 (C) support site development and mod16 ernization for a facility described in subpara17 graph (A); and 

18 (D) pay reasonable costs related to the op19 erating expenses for a facility described in sub20 paragraph (A), including specialized workforce, 

21 essential materials, and complex equipment 

22 maintenance, as determined by the Secretary. 

23 (5) CLAWBACK.— 


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1 (A) TARGET DATES.—For all major 

2 awards to covered entities, the Secretary 

3 shall— 

4 (i) determine target dates by which a 

5 project shall commence and complete; and 

6 (ii) set these dates by the time of 

7 award. 

8 (B) PROGRESSIVE RECOVERY FOR

9 DELAYS.—If the project does not commence 

10 and complete by the set target dates in (A), the 

11 Secretary shall progressively recover up to the 

12 full amount of an award provided to a covered 

13 entity under this subsection. 

14 (C) TECHNOLOGY CLAWBACK.—The Sec15 retary shall recover the full amount of an award 

16 provided to a covered entity under this sub17 section if, during the applicable term with re18 spect to the award, the covered entity know19 ingly engages in any joint research or tech20 nology licensing effort— 

21 (i) with a foreign entity of concern; 

22 and 

23 (ii) that relates to a technology or 

24 product that raises national security con25 cerns, as determined by the Secretary and 


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1 communicated to the covered entity before 

2 engaging in such joint research or tech3 nology licensing. 

4 (D) WAIVER.—In the case of delayed 

5 projects, the Secretary may waive elements of 

6 the clawback provisions incorporated in each 

7 major award after— 

8 (i) making a formal determination 

9 that circumstances beyond the ability of 

10 the covered entity to foresee or control are 

11 responsible for delays; and 

12 (ii) submitting congressional notifica13 tion. 

14 (E) CONGRESSIONAL NOTIFICATION.—The 

15 Secretary shall notify appropriate committees of 

16 Congress— 

17 (i) of the clawback provisions attend18 ing each such major award; and 

19 (ii) of any waivers provided, not later 

20 than 15 days after the date on which such 

21 a waiver was provided. 

22 (b) COORDINATION REQUIRED.—In carrying out the 

23 program established under subsection (a), the Secretary 

24 shall coordinate with the Secretary of State, the Secretary 

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1 retary of Energy, and the Director of National Intel2 ligence. 

3 (c) GAO REVIEWS.—The Comptroller General of the 

4 United States shall— 

5 (1) not later than 2 years after the date of dis6 bursement of the first financial award under sub7 section (a), and biennially thereafter for 10 years, 

8 conduct a review of the program established under 

9 subsection (a), which shall include, at a minimum— 

10 (A) a determination of the number of in11 stances in which financial assistance awards 

12 were provided under that subsection during the 

13 period covered by the review; 

14 (B) an evaluation of how— 

15 (i) the program is being carried out, 

16 including how recipients of financial assist17 ance awards are being selected under the 

18 program; and 

19 (ii) other Federal programs are lever20 aged for manufacturing, research, and 

21 training to complement the financial assist22 ance awards awarded under the program; 

23 and 


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1 (C) a description of the outcomes of 

2 projects supported by awards made under the 

3 program, including a description of— 

4 (i) facilities described in subsection 

5 (a)(1) that were constructed, expanded, or 

6 modernized as a result of awards made 

7 under the program; 

8 (ii) research and development carried 

9 out with awards made under the program; 

10 (iii) workforce training programs car11 ried out with awards made under the pro12 gram, including efforts to hire individuals 

13 from disadvantaged populations; and 

14 (iv) the impact of projects on the 

15 United States share of global microelec16 tronics production; and 

17 (2) submit to the appropriate committees of 

18 Congress the results of each review conducted under 

19 paragraph (1). 

20 SEC. 4. DEPARTMENT OF DEFENSE. 

21 (a) DEPARTMENT OF DEFENSE EFFORTS.— 

22 (1) IN GENERAL.—Subject to the availability of 

23 appropriations for such purposes, the Secretary of 

24 Defense, in consultation with the Secretary of Com25 merce, the Secretary of Energy, the Secretary of 


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1 Homeland Security, and the Director of National In2 telligence, shall establish a public-private partnership 

3 through which the Secretary shall work to 

4 incentivize the formation of one or more consortia of 

5 companies (or other such partnerships of private-sec6 tor entities, as appropriate) to ensure the develop7 ment and production of measurably secure micro8 electronics, including integrated circuits, logic de9 vices, memory, and the packaging and testing prac10 tices that support these microelectronic components 

11 by the Department of Defense, the intelligence com12 munity, critical infrastructure sectors, and other na13 tional security applications. Such incentives may in14 clude the use of grants under section 3, and pro15 viding incentives for the creation, expansion, or mod16 ernization of one or more commercially competitive 

17 and sustainable microelectronics manufacturing or 

18 advanced research and development facilities in the 

19 United States. 

20 (2) RISK MITIGATION REQUIREMENTS.—A par21 ticipant in a consortium formed with incentives 

22 under paragraph (1)— 

23 (A) shall have the potential to enable de24 sign, perform fabrication, assembly, package, or 

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1 ical to national security as defined by the Na2 tional Security Advisor and the Secretary of 

3 Defense; 

4 (B) may be a fabless company migrating 

5 its designs to the facility envisioned in para6 graph (1) or migrating to an existing facility 

7 onshore; 

8 (C) may be companies, including fabless 

9 companies and companies that procure large 

10 quantities of microelectronics, willing to co-in11 vest to achieve the objectives set forth in para12 graph (1); 

13 (D) shall include management processes to 

14 identify and mitigate supply chain security 

15 risks; and 

16 (E) shall be capable of providing microelec17 tronic components that are consistent with ap18 plicable measurably secure supply chain and 

19 operational security standards established under 

20 section 224(b) of the National Defense Author21 ization Act for Fiscal Year 2020 (Public Law 

22 116–92). 

23 (3) NATIONAL SECURITY CONSIDERATIONS.— 

24 The Secretary of Defense and the Director of Na25 tional Intelligence shall select participants for each 


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1 consortium and or partnership formed with incen2 tives under paragraph (1). In selecting such partici3 pants, the Secretary and the Director may jointly 

4 consider whether the companies— 

5 (A) have participated in previous programs 

6 and projects of the Department of Defense, De7 partment of Energy, or the intelligence commu8 nity, including— 

9 (i) the Trusted Integrated Circuit pro10 gram of the Intelligence Advanced Re11 search Projects Activity; 

12 (ii) trusted and assured microelec13 tronics projects, as administered by the 

14 Department of Defense; 

15 (iii) the Electronics Resurgence Initia16 tive program of the Defense Advanced Re17 search Projects Agency; or 

18 (iv) relevant semiconductor research 

19 programs of the Advanced Research 

20 Projects Agency–Energy; 

21 (B) have demonstrated an ongoing com22 mitment to performing contracts for the De23 partment of Defense and the intelligence com24 munity; 


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1 (C) are approved by the Defense Counter2 intelligence and Security Agency or the Office 

3 of the Director of National Intelligence as pre4 senting an acceptable security risk, taking into 

5 account supply chain assurance vulnerabilities, 

6 counterintelligence risks, and any risks pre7 sented by companies whose beneficial owners 

8 are located outside the United States; and 

9 (D) are evaluated periodically for foreign 

10 ownership, control, or influence by a foreign en11 tity of concern. 

12 (4) NONTRADITIONAL DEFENSE CONTRACTORS

13 AND COMMERCIAL ENTITIES.—Arrangements en14 tered into to carry out paragraph (1) shall be in 

15 such form as the Secretary of Defense determines 

16 appropriate to encourage industry participation of 

17 nontraditional defense contractors or commercial en18 tities and may include a contract, a grant, a cooper19 ative agreement, a commercial agreement, the use of 

20 other transaction authority under section 2371 of 

21 title 10, United States Code, or another such ar22 rangement. 

23 (5) IMPLEMENTATION.—Subject to the avail24 ability of appropriations for such purposes, the Sec25 retary of Defense— 


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1 (A) shall carry out paragraph (1) jointly 

2 through the Office of the Under Secretary of 

3 Defense for Research and Engineering and the 

4 Office of the Under Secretary of Defense for 

5 Acquisition and Sustainment; and 

6 (B) may carry out paragraph (1) in col7 laboration with any such other component of 

8 the Department of Defense as the Secretary of 

9 Defense considers appropriate. 

10 (6) OTHER INITIATIVES.— 

11 (A) REQUIRED INITIATIVES.—Subject to 

12 the availability of appropriations for such pur13 poses, the Secretary of Defense, in consultation 

14 with the Secretary of Energy and the Adminis15 trator of the National Nuclear Security Admin16 istration, as appropriate, may dedicate initia17 tives within the Department of Defense to carry 

18 out activities to advance radio frequency, mixed 

19 signal, radiation tolerant, and radiation hard20 ened microelectronics that support national se21 curity and dual-use applications. 

22 (B) SUPPORT PLAN REQUIRED.—The Sec23 retary of Defense, in consultation with the 

24 heads of appropriate departments and agencies 

25 of the Federal Government, shall develop a 


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1 plan, including assessment of resource require2 ments and designation of responsible officials, 

3 for the maintenance of capabilities to produce 

4 trusted and assured microelectronics to support 

5 current and legacy defense systems, other gov6 ernment systems essential for national security, 

7 and critical infrastructure of the United States, 

8 especially for items with otherwise limited com9 mercial demand. 

10 (C) ASSESSMENT OF PUBLIC PRIVATE

11 PARTNERSHIPS AND ACTIVITIES.—In conjunc12 tion with the activities carried out under this 

13 section, the Secretary of Defense shall enter 

14 into an agreement with the National Academies 

15 of Sciences, Engineering, and Medicine to un16 dertake a study to make recommendations and 

17 provide policy options for optimal public-private 

18 partnerships and partnership activities, includ19 ing an analysis of establishing a semiconductor 

20 manufacturing corporation to leverage private 

21 sector technical, managerial, and investment ex22 pertise, and private capital, as well as an as23 sessment of and response to the industrial poli24 cies of other nations to support industries in 

25 similar critical technology sectors, and deliver 


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1 such study to the congressional defense commit2 tees not later than October 1, 2022. 

3 (7) REPORTS.— 

4 (A) REPORT BY SECRETARY OF DE5 FENSE.—Not later than 90 days after the date 

6 of the enactment of this Act, the Secretary of 

7 Defense shall submit to Congress a report on 

8 the plans of the Secretary to carry out para9 graphs (1) and (6). 

10 (B) BIENNIAL REPORTS BY COMPTROLLER

11 GENERAL OF THE UNITED STATES.—Not later 

12 than one year after the date on which the Sec13 retary submits the report required by subpara14 graph (A) and not less frequently than once 

15 every two years thereafter for a period of 10 

16 years, the Comptroller General of the United 

17 States shall submit to Congress a report on the 

18 activities carried out under this subsection. 

19 (b) NATIONAL NETWORK FOR MICROELECTRONICS

20 RESEARCH AND DEVELOPMENT.— 

21 (1) IN GENERAL.—Subject to the availability of 

22 appropriations for such purposes, the Secretary of 

23 Defense may establish a national network for micro24 electronics research and development— 


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1 (A) to enable the laboratory to fabrication 

2 transition of microelectronics innovations in the 

3 United States; and 

4 (B) to expand the global leadership in 

5 microelectronics of the United States. 

6 (2) ACTIVITIES.—The national network for 

7 microelectronics research and development shall— 

8 (A) enable cost-effective exploration of new 

9 materials, devices, and architectures, and proto10 typing in domestic facilities to safeguard do11 mestic intellectual property; 

12 (B) accelerate the transition of new tech13 nologies to domestic microelectronics manufac14 turers; and 

15 (C) conduct other relevant activities 

16 deemed necessary by the Secretary of Defense 

17 for accomplishing the purposes of the national 

18 network for microelectronics research and devel19 opment. 

20 SEC. 5. DEPARTMENT OF COMMERCE STUDY ON STATUS OF 

21 MICROELECTRONICS TECHNOLOGIES IN THE 

22 UNITED STATES INDUSTRIAL BASE. 

23 (a) IN GENERAL.—Beginning not later than 180 

24 days after the date of the enactment of this Act, the Sec25 retary, in consultation with the heads of other Federal deVerDate Sep 11 2014 23:56 Dec 13, 2020 Jkt 019200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S4982.IS S4982

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1 partments and agencies, as appropriate, including the Sec2 retary of Defense, the Secretary of Homeland Security, 

3 and the Secretary of Energy, shall undertake a review, 

4 which shall include a survey, using authorities in section 

5 705 of the Defense Production Act of 1950 (50 U.S.C. 

6 4555), to assess the capabilities of the United States in7 dustrial base to support the national defense in light of 

8 the global nature of the supply chain and significant inter9 dependencies between the United States industrial base 

10 and the industrial bases of foreign countries with respect 

11 to the manufacture, design, and end use of microelec12 tronics. 

13 (b) RESPONSE TO SURVEY.—To the extent author14 ized by section 705 of the Defense Production Act of 1950 

15 (50 U.S.C. 4555) and section 702 of title 15, Code of Fed16 eral Regulations, the Secretary shall ensure all relevant 

17 potential respondents reply to the survey, including the 

18 following: 

19 (1) Corporations, partnerships, associations, or 

20 any other organized groups domiciled and with sub21 stantial operations in the United States. 

22 (2) Corporations, partnerships, associations, or 

23 any other organized groups with a physical presence 

24 of any kind in the United States. 


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1 (3) Foreign domiciled corporations, partner2 ships, associations, or any other organized groups 

3 with a physical presence of any kind in the United 

4 States. 

5 (c) INFORMATION REQUESTED.—To the extent au6 thorized by section 705 of the Defense Production Act of 

7 1950 (50 U.S.C. 4555) and section 702 of title 15, Code 

8 of Federal Regulations, the information sought from a re9 sponding entity specified in subsection (b) shall include, 

10 at minimum, information on the following with respect to 

11 the manufacture, design, or end use of microelectronics 

12 by such entity: 

13 (1) An identification of the geographic scope of 

14 operations. 

15 (2) Information on relevant cost structures. 

16 (3) An identification of types of microelec17 tronics development, manufacture, assembly, test, 

18 and packaging equipment in operation at such an 

19 entity. 

20 (4) An identification of all relevant intellectual 

21 property, raw materials, and semi-finished goods and 

22 components sourced domestically and abroad by 

23 such an entity. 

24 (5) Specifications of the microelectronics manu25 factured or designed by such an entity, descriptions 


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1 of the end uses of such microelectronics, and a de2 scription of any technical support provided to end 

3 users of such microelectronics by such an entity. 

4 (6) Information on domestic and export market 

5 sales by such an entity. 

6 (7) Information on the financial performance, 

7 including income and expenditures, of such an enti8 ty. 

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

10 and any other financial incentives, received by such 

11 an entity in each market in which such entity oper12 ates. 

13 (9) A list of regulatory or other informational 

14 requests about the respondents’ operations, sales, or 

15 other proprietary information by the People’s Re16 public of China entities under its direction or offi17 cials of the Chinese Communist Party, a description 

18 of the nature of each request, and the type of infor19 mation provided. 

20 (10) Information on any joint ventures, tech21 nology licensing agreements, and cooperative re22 search or production arrangements of such an enti23 ty. 

24 (11) A description of efforts by such an entity 

25 to evaluate and control supply chain risks. 


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1 (12) A list and description of any sales, licens2 ing agreements, or partnerships between such an en3 tity and the People’s Liberation Army or People’s 

4 Armed Police, including any business relationships 

5 with entities through which such sales, licensing 

6 agreements, or partnerships may occur. 

7 (d) REPORT.— 

8 (1) IN GENERAL.—The Secretary shall, in con9 sultation with the heads of other appropriate Fed10 eral departments and agencies, as appropriate, in11 cluding the Secretary of Defense, the Secretary of 

12 Homeland Security, and the Secretary of Energy, 

13 submit to Congress a report on the results of the re14 view required by subsection (a). The report shall in15 clude the following: 

16 (A) An assessment of the results of the re17 view. 

18 (B) A list of critical technology areas im19 pacted by potential disruptions in production of 

20 microelectronics, and a detailed description and 

21 assessment of the impact of such potential dis22 ruptions on such areas. 

23 (C) A description and assessment of gaps 

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1 ply chain and the national industrial supply 

2 base. 

3 (2) FORM.—The report required by paragraph 

4 (1) may be submitted in classified form. 

5 SEC. 6. FUNDING FOR DEVELOPMENT AND ADOPTION OF 

6 MEASURABLY SECURE SEMICONDUCTORS 

7 AND MEASURABLY SECURE SEMICONDUC8 TORS SUPPLY CHAINS. 

9 (a) MULTILATERAL SEMICONDUCTORS SECURITY

10 FUND.— 

11 (1) ESTABLISHMENT OF FUND.—The Secretary 

12 of the Treasury is authorized to establish a trust 

13 fund, to be known as the ‘‘Multilateral Semiconduc14 tors Security Fund’’ (in this section referred to as 

15 the ‘‘Fund’’), consisting of any appropriated funds 

16 credited to the Fund for such purpose. 

17 (2) REPORTING REQUIREMENT.—If the Fund 

18 authorized under subsection (a)(1) is not estab19 lished, 180 days after the date of the enactment of 

20 this Act and annually thereafter until such Fund is 

21 established, the Secretary of the Treasury, in coordi22 nation with the Secretary of State, shall provide, in 

23 writing, to the appropriate committees of Congress 

24 a rationale for not establishing the Fund. 

25 (3) INVESTMENT OF AMOUNTS.— 


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1 (A) INVESTMENT OF AMOUNTS.—If the 

2 Fund authorized under subsection (a)(1) is es3 tablished, the Secretary of the Treasury shall 

4 invest such portion of the Fund as is not re5 quired to meet current withdrawals in interest6 bearing obligations of the United States or in 

7 obligations guaranteed as to both principal and 

8 interest by the United States. 

9 (B) INTEREST AND PROCEEDS.—The in10 terest on, and the proceeds from the sale or re11 demption of, any obligations held in the Fund 

12 shall be credited to and form a part of the 

13 Fund. 

14 (4) USE OF FUND.— 

15 (A) IN GENERAL.—Subject to subpara16 graph (B), amounts in the Fund shall be avail17 able, as provided in advance in an appropria18 tions Act, to the Secretary of State— 

19 (i) to provide funding through the 

20 common funding mechanism described in 

21 subsection (b)(1) to support the develop22 ment and adoption of measurably secure 

23 semiconductors and measurably secure 

24 semiconductors supply chains; and 

25 (ii) to otherwise carry out this section. 


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1 (B) AVAILABILITY CONTINGENT ON INTER2 NATIONAL ARRANGEMENT OR AGREEMENT.— 

3 (i) IN GENERAL.—Amounts in the 

4 Fund shall be available to the Secretary of 

5 State, subject to appropriation, on and 

6 after the date on which the Secretary of 

7 State enters into an arrangement or agree8 ment with the governments of countries 

9 that are partners of the United States to 

10 participate in the common funding mecha11 nism under paragraph (1) of subsection 

12 (b). 

13 (ii) CONSULTATION.—Before entering 

14 into an arrangement or agreement as de15 scribed clause (i), the Secretary of State, 

16 in consultation with the Secretary of Com17 merce, shall ensure any partner govern18 ment maintains export control licensing 

19 policies on semiconductor technology sub20 stantively equivalent to the United States 

21 with respect to restrictions on such exports 

22 to the People’s Republic of China. 

23 (b) COMMON FUNDING MECHANISM FOR DEVELOP24 MENT AND ADOPTION OF MEASURABLY SECURE SEMIVerDate Sep 11 2014 05:16 Dec 12, 2020 Jkt 019200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S4982.IS S4982

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1 CONDUCTORS AND MEASURABLY SECURE SEMICONDUC2 TORS SUPPLY CHAINS.— 

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

4 consultation with the Secretary of Commerce, the 

5 Secretary of Defense, the Secretary of Homeland Se6 curity, the Secretary of the Treasury, the Secretary 

7 of Energy, and the Director of National Intelligence, 

8 is authorized to establish a common funding mecha9 nism, in coordination with foreign partners, that 

10 uses amounts from the Fund to support the develop11 ment and adoption of secure semiconductors and se12 cure semiconductors supply chains, including for use 

13 in research and development collaborations among 

14 partner countries participating in the common fund15 ing mechanism. In establishing and sustaining a 

16 common funding mechanism, the Secretary of State 

17 should leverage United States funding in order to 

18 secure contributions and commitments from trusted 

19 foreign partners, including cost sharing and other 

20 cooperative measures leading to the development and 

21 adoption of secure semiconductors and secure micro22 electronic supply chains. 

23 (2) COMMITMENTS.—In creating and sustaining 

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1 graph (1), the Secretary of State should promote ef2 forts among foreign partners to— 

3 (A) establish transparency requirements 

4 for any subsidies or other financial benefits (in5 cluding revenue foregone) provided to semi6 conductors firms located in or outside such 

7 countries; 

8 (B) establish consistent policies with re9 spect to countries that— 

10 (i) are not participating in the com11 mon funding mechanism; and 

12 (ii) do not meet transparency require13 ments established under subparagraph (A); 

14 (C) promote harmonized treatment of 

15 semiconductors and verification processes for 

16 items being exported to a country considered a 

17 national security risk by a country participating 

18 in the common funding mechanism; 

19 (D) establish consistent policies and com20 mon external policies to address nonmarket 

21 economies as the behavior of such countries 

22 pertains to semiconductors; 

23 (E) align policies on supply chain integrity 

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1 spect to protection and enforcement of intellec2 tual property rights; and 

3 (F) promote harmonized foreign direct in4 vestment screening measures and export control 

5 policies with respect to semiconductors to align 

6 with national, multilateral, and plurilateral se7 curity priorities. 

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

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

10 annually thereafter for each fiscal year during which 

11 amounts in the Fund are available under subsection 

12 (a)(4), the Secretary of State shall submit to the appro13 priate committees of Congress a report on the status of 

14 the implementation of this section that includes a descrip15 tion of— 

16 (1) any commitments made by the governments 

17 of countries that have entered into an arrangement 

18 or agreement with the United States to provide 

19 funding for the common funding mechanism de20 scribed in subsection (b)(1) and the specific amount 

21 so committed and other cooperative measures being 

22 taken by such countries as part of the common 

23 funding mechanism; 

24 (2) the criteria established for expenditure of 

25 funds through the common funding mechanism; 


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1 (3) how, and to whom, amounts have been ex2 pended from the Fund and a description of progress 

3 made utilizing the Fund to support the objectives 

4 described in subsection (b)(1); 

5 (4) amounts remaining in the Fund; 

6 (5) the progress of the Secretary of State to7 ward entering into an arrangement or agreement 

8 with the governments of countries that are partners 

9 of the United States to participate in the common 

10 funding mechanism and the commitments described 

11 in subsection (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 (d) NOTIFICATIONS TO BE PROVIDED BY THE

16 FUND.— 

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

18 to the Fund making a financial commitment associ19 ated with the provision of expenditures under sub20 section (a)(4)(A) in an amount in excess of 

21 $1,000,000, the Secretary of State shall submit to 

22 the appropriate committees of Congress a report in 

23 writing that contains the information required by 

24 paragraph (2). 


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1 (2) INFORMATION REQUIRED.—The information 

2 required by this subsection includes— 

3 (A) the amount of each such expenditure; 

4 (B) an identification of the recipient or 

5 beneficiary; and 

6 (C) a description of the project or activity 

7 and the purpose to be achieved by an expendi8 ture of the Fund. 

9 (3) ARRANGEMENTS OR AGREEMENTS.—The 

10 Secretary of State shall notify the appropriate com11 mittees of Congress not later than 30 days after en12 tering into a new bilateral or multilateral arrange13 ment or agreement described in subsection 

14 (a)(4)(B). 

15 SEC. 7. ADVANCED MICROELECTRONICS RESEARCH AND 

16 DEVELOPMENT. 

17 (a) SUBCOMMITTEE ON MICROELECTRONICS LEAD18 ERSHIP.— 

19 (1) ESTABLISHMENT REQUIRED.—The Presi20 dent shall establish in the National Science and 

21 Technology Council a subcommittee on matters re22 lating to leadership and competitiveness of the 

23 United States in microelectronics technology and in24 novation (in this section referred to as the ‘‘Sub25 committee)’’. 


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1 (2) MEMBERSHIP.—The Subcommittee shall be 

2 composed of the following members: 

3 (A) The Secretary of Defense. 

4 (B) The Secretary of Energy. 

5 (C) The Director of the National Science 

6 Foundation. 

7 (D) The Secretary of Commerce. 

8 (E) The Secretary of State. 

9 (F) The Secretary of Homeland Security. 

10 (G) The United States Trade Representa11 tive. 

12 (H) The Director of National Intelligence. 

13 (I) The heads of such other departments 

14 and agencies of the Federal Government as the 

15 President determines appropriate. 

16 (3) DUTIES.—The duties of the Subcommittee 

17 are as follows: 

18 (A) NATIONAL STRATEGY ON MICROELEC19 TRONICS RESEARCH.— 

20 (i) IN GENERAL.—In consultation 

21 with the advisory committee established in 

22 (b), and other appropriate stakeholders in 

23 the microelectronics industry and aca24 demia, the Subcommittee shall develop a 

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1 search, development, manufacturing, and 

2 supply chain security to— 

3 (I) accelerate the domestic devel4 opment and production of microelec5 tronics and strengthen the domestic 

6 microelectronics workforce; and 

7 (II) ensure that the United 

8 States is a global leader in the field of 

9 microelectronics research and develop10 ment. 

11 (ii) ELEMENTS.—The strategy devel12 oped under this subparagraph shall ad13 dress— 

14 (I) activities that may be carried 

15 out to strengthen engagement and 

16 outreach between the Department of 

17 Defense and industry, academia, 

18 international partners of the United 

19 States, and other departments and 

20 agencies of the Federal Government 

21 on issues relating to microelectronics; 

22 (II) priorities for research and 

23 development to accelerate the ad24 vancement and adoption of innovative 


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1 microelectronics and new uses of 

2 microelectronics and components; 

3 (III) the role of diplomacy and 

4 trade in maintaining the position of 

5 the United States as a global leader in 

6 the field of microelectronics; 

7 (IV) the potential role of a Fed8 eral laboratory, center, or incubator 

9 exclusively focused on the research 

10 and development of microelectronics, 

11 as described in section 231(b)(15) of 

12 the National Defense Authorization 

13 Act for Fiscal Year 2017 (as added by 

14 section 276 of this Act) in carrying 

15 out the strategy and plan required 

16 under this subparagraph; and 

17 (V) such other activities as the 

18 Subcommittee determines may be ap19 propriate to overcome future chal20 lenges to the innovation, competitive21 ness, and supply chain integrity of the 

22 United States in the field of micro23 electronics. 

24 (B) FOSTERING COORDINATION OF RE25 SEARCH AND DEVELOPMENT.—The SubVerDate Sep 11 2014 05:16 Dec 12, 2020 Jkt 019200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S4982.IS S4982

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1 committee shall coordinate microelectronics re2 lated research, development, manufacturing, 

3 and supply chain security activities and budgets 

4 of Federal agencies and ensure such activities 

5 are consistent with the strategy required under 

6 subparagraph (A). 

7 (C) REPORTING AND UPDATES.— 

8 (i) PROGRESS BRIEFING.—Not later 

9 than one year after the date of the enact10 ment of this Act, the President shall pro11 vide to the appropriate committees of Con12 gress a briefing on the progress of the 

13 Subcommittee in developing the strategy 

14 required under subparagraph (A). 

15 (ii) STRATEGY UPDATE.—Not less fre16 quently than once every 5 years, the Sub17 committee shall update the strategy devel18 oped under subparagraph (A) and submit 

19 the revised strategy to the appropriate 

20 committees of Congress. 

21 (4) SUNSET.—The Subcommittee shall termi22 nate on the date that is 10 years after the date of 

23 the enactment of this Act. 

24 (b) INDUSTRIAL ADVISORY COMMITTEE.— 


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1 (1) ESTABLISHMENT.—The Secretary of Com2 merce, in consultation with the Secretary of Defense, 

3 the Secretary of Energy, and the Secretary of 

4 Homeland Security, shall establish an advisory com5 mittee to be composed of not fewer than 12 mem6 bers, including representatives of industry, Federal 

7 laboratories, and academic institutions, who are 

8 qualified to provide advice to the United States Gov9 ernment on matters relating to microelectronics re10 search, development, manufacturing, and policy. 

11 (2) DUTIES.—The advisory committee shall as12 sess and provide guidance to the United States Gov13 ernment on— 

14 (A) science and technology needs of the 

15 Nation’s domestic microelectronics industry; 

16 (B) the extent to which the strategy devel17 oped under subsection (a)(3) is helping main18 tain United States leadership in microelec19 tronics manufacturing; 

20 (C) assessment of the research and devel21 opment programs and activities authorized 

22 under this section; and 

23 (D) opportunities for new public-private 

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1 search, development, and domestic manufac2 turing. 

3 (3) FACA EXEMPTION.—Section 14 of the Fed4 eral Advisory Committee Act (5 U.S.C. App.) shall 

5 not apply to the advisory committee established 

6 under this subsection. 

7 (c) NATIONAL SEMICONDUCTOR TECHNOLOGY CEN8 TER.— 

9 (1) ESTABLISHMENT.—Subject to the avail10 ability of appropriations for such purpose, the Sec11 retary of Commerce, in collaboration with the Sec12 retary of Defense, shall establish a national semicon13 ductor technology center to conduct research and 

14 prototyping of advanced semiconductor technology to 

15 strengthen the economic competitiveness and secu16 rity of the domestic supply chain. Such center shall 

17 be operated as a public private-sector consortium 

18 with participation from the private sector, the De19 partment of Energy, and the National Science Foun20 dation. 

21 (2) FUNCTIONS.—The functions of the center 

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

23 (A) To conduct advanced semiconductor 

24 manufacturing, design and packaging research, 

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1 mestic ecosystem and is aligned with the strat2 egy required under subsection (a)(3)(A) with 

3 emphasis on the following: 

4 (i) Semiconductor advanced test, as5 sembly, and packaging capability in the do6 mestic ecosystem. 

7 (ii) Materials characterization, instru8 mentation and testing for next generation 

9 microelectronics. 

10 (iii) Virtualization and automation of 

11 maintenance of semiconductor machinery. 

12 (iv) Metrology for security and supply 

13 chain verification. 

14 (B) To establish an investment fund, in 

15 partnership with the private sector, to support 

16 startups and collaborations between startups, 

17 academia, established companies, and new ven18 tures, with the goal of commercializing innova19 tions that contribute to the domestic semicon20 ductor ecosystem, including— 

21 (i) advanced metrology and character22 ization for manufacturing of microchips 

23 using 3 nanometer transistor processes or 

24 more advanced processes; and 


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1 (ii) metrology for security and supply 

2 chain verification. 

3 (C) To work with the Secretary of Labor, 

4 the Director of the National Science Founda5 tion, the Secretary of Energy, the private sec6 tor, institutions of higher education, and work7 force training entities to incentivize and expand 

8 participation in graduate and undergraduate 

9 programs, and develop workforce training pro10 grams and apprenticeships, in advanced micro11 electronic design, research, fabrication, and 

12 packaging capabilities. 

13 (d) NATIONAL ADVANCED PACKAGING MANUFAC14 TURING PROGRAM.—Subject to the availability of appro15 priations for such purpose, the Secretary of Commerce 

16 shall establish a National Advanced Packaging Manufac17 turing Program led by the Director of the National Insti18 tute of Standards and Technology, in coordination with 

19 the national semiconductor technology center established 

20 under subsection (c), to strengthen semiconductor ad21 vanced test, assembly, and packaging capability in the do22 mestic ecosystem, and which shall coordinate with the 

23 Manufacturing USA institute established under subsection 

24 (f), if applicable. 


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1 (e) MICROELECTRONICS RESEARCH AT THE NA2 TIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.— 

3 Subject to the availability of appropriations for such pur4 pose, the Director of the National Institute of Standards 

5 and Technology shall carry out a microelectronics research 

6 program to enable advances and breakthroughs in meas7 urement science, standards, material characterization, in8 strumentation, testing, and manufacturing capabilities 

9 that will accelerate the underlying research and develop10 ment for metrology of next generation microelectronics 

11 and ensure the competitiveness and leadership of the 

12 United States within this sector. 

13 (f) CREATION OF A MANUFACTURING USA INSTI14 TUTE.—Subject to the availability of appropriations for 

15 such purpose, the Director of the National Institute of 

16 Standards and Technology may establish a Manufacturing 

17 USA institute described in section 34(d) of the National 

18 Institute of Standards and Technology Act (15 U.S.C. 

19 278s(d)) that is focused on semiconductor manufacturing. 

20 Such institute may emphasize the following: 

21 (1) Research to support the virtualization and 

22 automation of maintenance of semiconductor ma23 chinery. 

24 (2) Development of new advanced test, assem25 bly, and packaging capabilities. 


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1 (3) Developing and deploying educational and 

2 skills training curricula needed to support the indus3 try sector and ensure the United States can build 

4 and maintain a trusted and predictable talent pipe5 line. 

6 (g) DOMESTIC PRODUCTION REQUIREMENTS.—The 

7 head of any executive agency receiving funding under this 

8 section shall develop policies to require domestic produc9 tion, to the extent possible, for any intellectual property 

10 resulting from microelectronics research and development 

11 conducted as a result of such funding and domestic control 

12 requirements to protect any such intellectual property 

13 from foreign adversaries. 

14 SEC. 8. PROHIBITION RELATING TO FOREIGN ENTITIES OF 

15 CONCERN. 

16 None of the funds authorized to be appropriated to 

17 carry out this Act may be provided to a foreign entity of 

18 concern. 

19 SEC. 9. DEFENSE PRODUCTION ACT OF 1950 EFFORTS. 

20 (a) IN GENERAL.—Not later than 180 days after the 

21 date of the enactment of this Act, the President shall sub22 mit to Congress a report on a plan of action for any use 

23 of authorities available in title III of the Defense Produc24 tion Act of 1950 (50 U.S.C. 4531 et seq.) to establish 


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1 or enhance a domestic production capability for microelec2 tronics technologies and related technologies, subject to— 

3 (1) the availability of appropriations for that 

4 purpose; and 

5 (2) a determination made under the plan pursu6 ant to such title III that such technologies are essen7 tial to the national defense and that domestic indus8 trial capabilities are insufficient to meet these needs. 

9 (b) COORDINATION.—The President shall develop the 

10 plan of action required by subsection (a) in consultation 

11 with any relevant head of a Federal agency, an advisory 

12 committee established under section 708(d) of the Defense 

13 Production Act of 1950 (50 U.S.C. 4558(d)), and appro14 priate stakeholders in the private sector. 

Æ 


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