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[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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