I 

116TH CONGRESS 

2D SESSION H. R. 7178 

To restore American leadership in semiconductor manufacturing by increasing 

Federal incentives in order to enable advanced research and development, 

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

economic competitiveness. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 11, 2020 

Mr. MCCAUL (for himself and Ms. MATSUI) introduced the following bill; 

which was referred to the Committee on Science, Space, and Technology, 

and in addition to the Committees on Ways and Means, Armed Services, 

Financial Services, Energy and Commerce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

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

advanced research and development, secure the supply 

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

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Creating Helpful In3 centives to Produce Semiconductors for America Act’’ or 

4 the ‘‘CHIPS for America Act’’. 

5 SEC. 2. SEMICONDUCTOR INVESTMENT TAX CREDIT. 

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

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

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

9 the following: 

10 ‘‘SEC. 48D. QUALIFYING SEMICONDUCTOR EQUIPMENT 

11 CREDIT. 

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

13 qualifying semiconductor equipment credit for any taxable 

14 year is the applicable percentage of— 

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

16 equipment placed in service during such taxable 

17 year, 

18 ‘‘(2) any qualified semiconductor manufacturing 

19 facility investment expenditures incurred during 

20 such taxable year, and 

21 ‘‘(3) any expenses incurred by the taxpayer dur22 ing such taxable year with respect to entering into 

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

24 for qualified semiconductor equipment. 

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

26 subsection (a), the applicable percentage is— 


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

2 semiconductor equipment which is placed in service 

3 before January 1, 2025, or any qualified semicon4 ductor manufacturing facility investment expendi5 tures or expenses described in subsection (a)(3) 

6 which are incurred before such date, 

7 ‘‘(2) 30 percent in the case of any such equip8 ment which is placed in service, or any such expendi9 tures or expenses which are incurred, after Decem10 ber 31, 2024, and before January 1, 2026, 

11 ‘‘(3) 20 percent in the case of any such equip12 ment which is placed in service, or any such expendi13 tures or expenses which are incurred, after Decem14 ber 31, 2025, and before January 1, 2027, and 

15 ‘‘(4) 0 percent in the case of any such equip16 ment which is placed in service, or any such expendi17 tures or expenses which are incurred, after Decem18 ber 31, 2026. 

19 ‘‘(c) QUALIFIED SEMICONDUCTOR EQUIPMENT.— 

20 For purposes of this section, the term ‘qualified semicon21 ductor equipment’ means any property— 

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

23 in consultation with the Secretary of Commerce, as 

24 machinery or equipment that is designed and used 

25 to— 


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1 ‘‘(A) manufacture or process semiconduc2 tors, or 

3 ‘‘(B) perform research with respect to 

4 semiconductors, 

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

6 States by the taxpayer, and 

7 ‘‘(3) with respect to which depreciation (or am8 ortization in lieu of depreciation) is allowable. 

9 ‘‘(d) QUALIFIED SEMICONDUCTOR MANUFACTURING

10 FACILITY INVESTMENT EXPENDITURES.—For purposes 

11 of this section, the term ‘qualified semiconductor manufac12 turing facility investment expenditure’ means any amount 

13 properly chargeable to capital account— 

14 ‘‘(1) for property for which depreciation is al15 lowable under section 168, and 

16 ‘‘(2) in connection with the construction or up17 grading of any facility located in the United States 

18 which substantially operates qualified semiconductor 

19 equipment, including— 

20 ‘‘(A) costs relating to— 

21 ‘‘(i) acquiring or upgrading an exist22 ing building, or 

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

24 and 

25 ‘‘(B) property such as— 


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1 ‘‘(i) integrated systems, fixtures, pip2 ing, movable partitions, and lighting, and 

3 ‘‘(ii) any property which has been 

4 identified by the Secretary, in consultation 

5 with the Secretary of Commerce, as nec6 essary or adapted to— 

7 ‘‘(I) reduce contamination, or 

8 ‘‘(II) control air flow, tempera9 ture, humidity, chemical purity, or 

10 other environmental conditions or 

11 manufacturing tolerances. 

12 ‘‘(e) CERTAIN PROGRESS EXPENDITURE RULES

13 MADE APPLICABLE.—Rules similar to the rules of sub14 sections (c)(4) and (d) of section 46 (as in effect on the 

15 day before the date of the enactment of the Revenue Rec16 onciliation Act of 1990) shall apply for purposes of sub17 section (a). 

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

19 credit determined under this section with respect to any 

20 qualified semiconductor equipment placed in service before 

21 January 1, 2027, or any qualified semiconductor manufac22 turing facility investment expenditures incurred before 

23 such date, shall be treated as a credit allowable under sub24 part C (and not allowable under section 38). 

25 ‘‘(g) DENIAL OF DOUBLE BENEFIT.— 


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1 ‘‘(1) REDUCTION OF BASIS.—If a credit is de2 termined under this section with respect to any 

3 property, the basis of such property shall be reduced 

4 by the amount of the credit so determined. 

5 ‘‘(2) OTHER CREDITS.—No credit shall be al6 lowed under any provision of this chapter with re7 spect to any amount taken in account in determining 

8 the credit allowed to a taxpayer under this section. 

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

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

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

12 date of the enactment of the Revenue Reconciliation Act 

13 of 1990) shall apply. 

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

15 under this section with respect to any qualified semicon16 ductor equipment which is used predominantly outside the 

17 United States. 

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

19 subsection (a) which is determined at the partnership 

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

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

22 transfer their distributive share of such credit to any other 

23 partner in the partnership. 

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

25 such regulations or other guidance as may be necessary 


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

2 such measures as are deemed appropriate to avoid abuse 

3 or fraud with respect to the credit allowed under this sec4 tion.’’. 

5 (b) TAX ON BASE EROSION PAYMENTS OF TAX6 PAYERS WITH SUBSTANTIAL GROSS RECEIPTS.—Section 

7 59A(b)(1)(B)(ii) of the Internal Revenue Code of 1986 is 

8 amended— 

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

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

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

12 ‘‘(III) the credit determined 

13 under section 48D for the taxable 

14 year.’’. 

15 (c) INVESTMENT CREDIT.—Section 46 of the Inter16 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

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

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

19 at the end the following new paragraph: 

20 ‘‘(7) the qualifying semiconductor equipment 

21 credit.’’. 

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

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

24 of the Internal Revenue Code of 1986 is amended by inVerDate Sep 11 2014 22:26 Jun 30, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7178.IH H7178

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1 serting after the item relating to section 48C the following 

2 new item: 

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

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

4 this section shall apply to any qualified semiconductor 

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

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

7 or any qualified semiconductor manufacturing facility in8 vestment expenditure (as defined in subsection (d) of such 

9 section) incurred after such date. 

10 SEC. 3. BUILDING UNITED STATES CAPACITY FOR 

11 VERIFICATION AND MANUFACTURING OF AD12 VANCED MICROELECTRONICS. 

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

14 through the Director of the National Institute of Stand15 ards and Technology, shall carry out a program of re16 search and development investment to enable advances 

17 and breakthroughs in measurement science, standards, 

18 material characterization, instrumentation, testing, and 

19 manufacturing capabilities that will accelerate the under20 lying research and development for design, development, 

21 and manufacturability of next generation microelectronics 

22 and ensure the competitiveness and leadership of the 

23 United States within this sector. 

24 (b) COMPONENTS.—The program required by sub25 section (a) shall cover the following: 


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1 (1) Advanced metrology and characterization 

2 for manufacturing of microchips using 3 nanometer 

3 transistor processes or more advanced processes. 

4 (2) Metrology for security and supply chain 

5 verification. 

6 (3) Creation of a Manufacturing USA institute 

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

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

9 278s(d)) that is focused on semiconductor manufac10 turing. Such institute may emphasize the following: 

11 (A) Research to support the virtualization 

12 and automation of maintenance of semicon13 ductor machinery. 

14 (B) Development of new advanced test, as15 sembly and packaging capabilities. 

16 (C) Developing and deploying educational 

17 and skills training curricula needed to support 

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

19 build and maintain a trusted and predictable 

20 talent pipeline. 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to the Secretary 

23 amounts as follows: 

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

25 for each of fiscal years 2021 through 2025. 


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

2 for each of fiscal years 2021 through 2025. 

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

4 for each of fiscal years 2021 through 2025. 

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

6 (a) DEFINITIONS.—In this section— 

7 (1) the term ‘‘appropriate committees of Con8 gress’’ means— 

9 (A) the Select Committee on Intelligence, 

10 the Committee on Commerce, Science, and 

11 Transportation, the Committee on Foreign Re12 lations, the Committee on Armed Services, and 

13 the Committee on Homeland Security and Gov14 ernmental Affairs of the Senate; and 

15 (B) the Permanent Select Committee on 

16 Intelligence, the Committee on Energy and 

17 Commerce, the Committee on Foreign Affairs, 

18 the Committee on Armed Services, the Com19 mittee on Science, Space, and Technology, and 

20 the Committee on Homeland Security of the 

21 House of Representatives; 

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

23 (A) means an incentive offered by a gov24 ernmental entity to a private entity for the pur25 poses of building within the jurisdiction of the 


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1 governmental entity a fabrication (or other es2 sential) facility relating to the manufacturing of 

3 semiconductors; and 

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

5 incentive or reduction with respect to employ6 ment or payroll taxes or a tax abatement with 

7 respect to personal or real property), a work8 force-related incentive (including a grant agree9 ment relating to workforce training or voca10 tional education), any concession with respect 

11 to real property, and any other incentive deter12 mined appropriate by the Secretary, in con13 sultation with the Secretary of State; 

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

15 State or local government; and 

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

17 of Commerce. 

18 (b) GRANTS.— 

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

20 in the Department of Commerce a program that, in 

21 accordance with the requirements of this section, 

22 provides grants to governmental entities that offer 

23 covered incentives. 

24 (2) PROCEDURE.— 


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1 (A) IN GENERAL.—A governmental entity 

2 that offers a covered incentive and that desires 

3 to receive a grant under this subsection shall 

4 submit to the Secretary an application that de5 scribes the covered incentive offered by the gov6 ernmental entity. 

7 (B) CONDITIONS FOR APPROVAL.—The 

8 Secretary shall approve an application sub9 mitted by a governmental entity under subpara10 graph (A)— 

11 (i) upon confirmation by the Secretary 

12 that the private entity to which the govern13 mental entity has offered the covered in14 centive to which the application relates has 

15 agreed to build in the applicable jurisdic16 tion a facility described in subsection 

17 (a)(2)(A); and 

18 (ii) if the Secretary determines that 

19 building the facility described in clause (i) 

20 is in the interest of the United States. 

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

22 by the Secretary to a governmental entity under this 

23 subsection shall be in an amount that is not less 

24 than the value of the applicable covered incentive ofVerDate Sep 11 2014 21:06 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7178.IH H7178

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1 fered by the governmental entity, as determined by 

2 the Secretary. 

3 (4) CLAWBACK.—The Secretary shall recover 

4 the full amount of a grant made to a governmental 

5 entity under this subsection with respect to a cov6 ered incentive offered by the governmental entity 

7 if— 

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

9 date on which the Secretary makes the grant, 

10 the facility to which the covered incentive re11 lates has not been completed; or 

12 (B) during the term of the grant, the pri13 vate entity to which the covered incentive was 

14 offered engages in any joint research or tech15 nology licensing effort— 

16 (i) with the Government of the Peo17 ple’s Republic of China, the Government of 

18 the Russian Federation, the Government of 

19 Iran, or the Government of North Korea; 

20 and 

21 (ii) that relates to a sensitive tech22 nology or product, as determined by the 

23 Secretary. 

24 (c) CONSULTATION AND COORDINATION RE25 QUIRED.—In carrying out the program established under 


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

2 with the Secretary of State. 

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

4 United States shall— 

5 (1) not later than 2 years after the date of en6 actment of this Act, and biennially thereafter until 

7 the date that is 10 years after that date of enact8 ment, conduct a review of the program established 

9 under subsection (b), which shall include a deter10 mination of the number of grants made under that 

11 program during the period covered by the review 

12 that failed to comply with a requirement under this 

13 section; and 

14 (2) submit to the appropriate committees of 

15 Congress the results of each review conducted under 

16 paragraph (1). 

17 (e) TRUST FUND.— 

18 (1) ESTABLISHMENT.—There is established in 

19 the Treasury of the United States a trust fund (re20 ferred to in this subsection as the ‘‘Trust Fund’’), 

21 consisting of amounts transferred to the Trust Fund 

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

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

24 (2) TRANSFER OF AMOUNTS.— 


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1 (A) IN GENERAL.—Subject to subpara2 graph (B), the Secretary of the Treasury shall 

3 transfer to the Trust Fund, from the general 

4 fund of the Treasury, for fiscal year 2021 and 

5 each fiscal year thereafter, an amount equiva6 lent to the amount received into the general 

7 fund during that fiscal year and attributable to 

8 duties imposed under section 301 of the Trade 

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

10 (B) LIMITATIONS.— 

11 (i) LIMITATION ON TRANSFERS.—The 

12 amount transferred to the Trust Fund 

13 under subparagraph (A) in a fiscal year 

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

15 (ii) LIMITATION ON TOTAL BAL16 ANCE.—The total amount in the Trust 

17 Fund at any one time may not exceed 

18 $10,000,000,000. 

19 (C) FREQUENCY OF TRANSFERS.—The 

20 Secretary shall transfer amounts required to be 

21 transferred to the Trust Fund under this para22 graph not less frequently than quarterly from 

23 the general fund of the Treasury to the Trust 

24 Fund. 

25 (3) INVESTMENT OF AMOUNTS.— 


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1 (A) INVESTMENT OF AMOUNTS.—The Sec2 retary shall invest such portion of the Trust 

3 Fund as is not required to meet current with4 drawals in interest-bearing obligations of the 

5 United States or in obligations guaranteed as to 

6 both principal and interest by the United 

7 States. 

8 (B) INTEREST AND PROCEEDS.—The in9 terest on, and the proceeds from the sale or re10 demption of, any obligations held in the Trust 

11 Fund shall be credited to and form a part of 

12 the Trust Fund. 

13 (4) AVAILABILITY OF AMOUNTS IN TRUST

14 FUND.—Amounts in the Trust Fund shall be avail15 able, as provided in advance in an appropriations 

16 Act, to the Secretary to make grants under this sec17 tion. 

18 SEC. 5. DEPARTMENT OF DEFENSE SUPPORT FOR SEMI19 CONDUCTOR TECHNOLOGIES AND RELATED 

20 TECHNOLOGIES. 

21 (a) RDT&E AND WORKFORCE TRAINING EF22 FORTS.— 

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

24 shall, in consultation with the Secretary of Com25 merce and the Secretary of Labor, establish and imVerDate Sep 11 2014 21:06 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H7178.IH H7178

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1 plement a priority in the use of amounts available to 

2 the Department of Defense for research, develop3 ment, test, and evaluation, and for workforce train4 ing, for programs, projects, and activities in connec5 tion with semiconductor technologies and related 

6 technologies. 

7 (2) DISCHARGE.—The Secretary of Defense 

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

9 the Under Secretary of Defense for Research and 

10 Engineering or such other component of the Depart11 ment of Defense as the Secretary considers appro12 priate. 

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

14 appropriated for each fiscal year for the Department 

15 of Defense for research, development, test, and eval16 uation, not less the $50,000,000 shall be available in 

17 such fiscal year for programs, projects, and activities 

18 described in paragraph (1) in furtherance of the pri19 ority required by that paragraph. 

20 (b) DPA EFFORTS.— 

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

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

23 President shall submit to Congress a report on, and 

24 shall commence implementation of, a plan for use by 

25 the Department of Defense of authorities available 


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1 in title III of the Defense Production Act of 1950 

2 (50 U.S.C. 4531 et seq.) to establish and enhance 

3 a domestic production capability for semiconductor 

4 technologies and related technologies, if funding is 

5 available for that purpose. 

6 (2) CONSULTATION.—The President shall de7 velop the plan required by paragraph (1) in con8 sultation with the Secretary of Defense, the Sec9 retary of State, the Secretary of Commerce, and ap10 propriate stakeholders in the private sector. 

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

12 SEMICONDUCTOR TECHNOLOGIES IN THE 

13 UNITED STATES INDUSTRIAL BASE. 

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

15 days after the date of the enactment of this Act, the Sec16 retary of Commerce shall undertake a survey, using au17 thorities in section 705 of the Defense Production Act (50 

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

19 States industrial base to support the national defense in 

20 light of the global nature of the supply chain and signifi21 cant interdependencies between the United States indus22 trial base and the industrial base of foreign countries with 

23 respect to the manufacture and design of semiconductors. 


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1 (b) RESPONSE TO SURVEY.—The Secretary shall en2 sure compliance with the survey from among all relevant 

3 potential respondents, including the following: 

4 (1) Corporations, partnerships, associations, or 

5 any other organized groups domiciled and with sub6 stantial operations in the United States. 

7 (2) Corporations, partnerships, associations, or 

8 any other organized groups domiciled in the United 

9 States with operations outside the United States. 

10 (3) Foreign domiciled corporations, partner11 ships, associations, or any other organized groups 

12 with substantial operations or business presence in, 

13 or substantial revenues derived from, the United 

14 States. 

15 (4) Foreign domiciled corporations, partner16 ships, associations, or any other organized groups in 

17 defense treaty or assistance countries where the pro18 duction of the entity concerned involves critical tech19 nologies covered by section 3. 

20 (c) INFORMATION REQUESTED.—The information 

21 sought from a responding entity pursuant to the survey 

22 required by subsection (a) shall include, at minimum, in23 formation on the following with respect to the manufac24 ture or design of semiconductors by such entity: 


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1 (1) An identification of the geographic scope of 

2 operations. 

3 (2) Information on relevant cost structures. 

4 (3) An identification of types of semiconductor 

5 equipment in operation at such entity. 

6 (4) An identification of all relevant raw mate7 rials and semi-finished goods and components 

8 sourced domestically and abroad by such entity. 

9 (5) Specifications of the semiconductors manu10 factured or designed by such entity, descriptions of 

11 the end-uses of such semiconductors, and a descrip12 tion of any technical support provided to end-users 

13 of such semiconductors by such entity. 

14 (6) Information on domestic and export market 

15 sales by such entity. 

16 (7) Information on the financial performance, 

17 including income and expenditures, of such entity. 

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

19 and any other financial incentives, received by such 

20 entity in each market in which such entity operates. 

21 (9) A list of information requests from the Peo22 ple’s Republic of China to such entity, and a de23 scription of the nature of each request and the type 

24 of information provided. 


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1 (10) Information on any joint ventures, tech2 nology licensing agreements, and cooperative re3 search or production arrangements of such entity. 

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

5 evaluate and control supply chain risks it faces. 

6 (12) A list and description of any sales, licens7 ing agreements, or partnerships between such entity 

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

9 Police, including any business relationships with en10 tities through which such sales, licensing agree11 ments, or partnerships may occur. 

12 SEC. 7. FUNDING FOR DEVELOPMENT AND ADOPTION OF 

13 SECURE MICROELECTRONICS AND SECURE 

14 MICROELECTRONICS SUPPLY CHAINS. 

15 (a) MULTILATERAL MICROELECTRONICS SECURITY

16 FUND.— 

17 (1) ESTABLISHMENT OF FUND.—There is es18 tablished in the Treasury of the United States a 

19 trust fund, to be known as the ‘‘Multilateral Micro20 electronics Security Fund’’ (in this section referred 

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

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

23 amounts that may be credited to the Trust Fund 

24 under paragraph (3). 


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1 (2) AUTHORIZATION OF APPROPRIATIONS.— 

2 There are authorized to be appropriated 

3 $750,000,000 to be deposited in the Fund. 

4 (3) INVESTMENT OF AMOUNTS.— 

5 (A) INVESTMENT OF AMOUNTS.—The Sec6 retary of the Treasury shall invest such portion 

7 of the Fund as is not required to meet current 

8 withdrawals in interest-bearing obligations of 

9 the United States or in obligations guaranteed 

10 as to both principal and interest by the United 

11 States. 

12 (B) INTEREST AND PROCEEDS.—The in13 terest on, and the proceeds from the sale or re14 demption of, any obligations held in the Fund 

15 shall be credited to and form a part of the 

16 Fund. 

17 (4) USE OF FUND.— 

18 (A) IN GENERAL.—Subject to subpara19 graph (B), amounts in the Fund shall be avail20 able, as provided in advance in an appropria21 tions Act, to the Secretary of State— 

22 (i) to provide funding through the 

23 common funding mechanism described in 

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1 tronics and secure microelectronics supply 

2 chains; and 

3 (ii) to otherwise carry out this section. 

4 (B) AVAILABILITY CONTINGENT ON INTER5 NATIONAL AGREEMENT.—Amounts in the Fund 

6 shall be available to the Secretary of State on 

7 and after the date on which the Secretary en8 ters into an agreement with the governments of 

9 countries that are partners of the United States 

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

12 the commitments described in paragraph (2) of 

13 that subsection. 

14 (5) AVAILABILITY OF AMOUNTS.— 

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

16 shall remain available through the end of the 

17 tenth fiscal year beginning after the date of the 

18 enactment of this Act. 

19 (B) REMAINDER TO TREASURY.—Any 

20 amounts remaining in the Fund after the end 

21 of the fiscal year described in subparagraph (A) 

22 shall be deposited in the general fund of the 

23 Treasury. 


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1 (b) COMMON FUNDING MECHANISM FOR DEVELOP2 MENT AND ADOPTION OF SECURE MICROELECTRONICS

3 AND SECURE MICROELECTRONICS SUPPLY CHAINS.— 

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

5 consultation with the Secretary of Commerce, the 

6 Secretary of Defense, the Secretary of Homeland Se7 curity, the Secretary of the Treasury, and the Direc8 tor of National Intelligence, shall seek to establish a 

9 common funding mechanism, in coordination with 

10 the governments of countries that are partners of 

11 the United States, that uses amounts from the 

12 Fund, and amounts committed by such governments, 

13 to support the development and adoption of secure 

14 microelectronics and secure microelectronics supply 

15 chains. 

16 (2) MUTUAL COMMITMENTS.—The Secretary of 

17 State, in consultation with the United States Trade 

18 Representative and the Secretary of Commerce, shall 

19 seek to negotiate a set of mutual commitments with 

20 the governments of countries that are partners of 

21 the United States upon which to condition any ex22 penditure of funds pursuant to the common funding 

23 mechanism described in paragraph (1). Such com24 mitments shall, at a minimum— 


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1 (A) establish transparency requirements 

2 for any subsidies or other financial benefits (in3 cluding revenue foregone) provided to microelec4 tronics firms located in or outside such coun5 tries; 

6 (B) establish consistent policies with re7 spect to countries that— 

8 (i) are not participating in the com9 mon funding mechanism; and 

10 (ii) do not meet transparency require11 ments established under subparagraph (A); 

12 (C) promote harmonized treatment of 

13 microelectronics and verification processes for 

14 items being exported to a country considered a 

15 national security risk by a country participating 

16 in the common funding mechanism; 

17 (D) establish consistent policies and com18 mon external policies to address nonmarket 

19 economies as the behavior of such countries 

20 pertains to microelectronics; and 

21 (E) align policies on supply chain integrity 

22 and microelectronics security. 

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

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

25 annually thereafter for each fiscal year during which 


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1 amounts in the Fund are available under subsection 

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

3 report on the status of the implementation of this section 

4 that includes a description of— 

5 (1) any commitments made by the governments 

6 of countries that are partners of the United States 

7 to providing funding for the common funding mecha8 nism described in subsection (b)(1) and the specific 

9 amount so committed; 

10 (2) the criteria established for expenditure of 

11 funds through the common funding mechanism; 

12 (3) how, and to whom, amounts have been ex13 pended from the Fund; 

14 (4) amounts remaining in the Fund; 

15 (5) the progress of the Secretary of State to16 ward entering into an agreement with the govern17 ments of countries that are partners of the United 

18 States to participate in the common funding mecha19 nism and the commitments described in subsection 

20 (b)(2); and 

21 (6) any additional authorities needed to en22 hance the effectiveness of the Fund in achieving the 

23 security goals of the United States. 


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1 SEC. 8. ADVANCED SEMICONDUCTOR RESEARCH AND DE2 SIGN. 

3 (a) APPROPRIATE COMMITTEES OF CONGRESS.—In 

4 this section, the term ‘‘appropriate committees of Con5 gress’’ means— 

6 (1) the Select Committee on Intelligence, the 

7 Committee on Commerce, Science, and Transpor8 tation, the Committee on Foreign Relations, the 

9 Committee on Armed Services, and the Committee 

10 on Homeland Security and Governmental Affairs of 

11 the Senate; and 

12 (2) the Permanent Select Committee on Intel13 ligence, the Committee on Energy and Commerce, 

14 the Committee on Foreign Affairs, the Committee 

15 on Armed Services, the Committee on Science, 

16 Space, and Technology, and the Committee on 

17 Homeland Security of the House of Representatives. 

18 (b) SENSE OF CONGRESS.—It is the sense of Con19 gress that the leadership of the United States in semicon20 ductor technology and innovation is critical to the eco21 nomic growth and national security of the United States. 

22 (c) SUBCOMMITTEE ON SEMICONDUCTOR LEADER23 SHIP.— 

24 (1) ESTABLISHMENT REQUIRED.—The Presi25 dent shall establish in the National Science and 

26 Technology Council a subcommittee on matters reVerDate Sep 11 2014 21:06 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H7178.IH H7178

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1 lating to leadership of the United States in semicon2 ductor technology and innovation. 

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

4 established under paragraph (1) are as follows: 

5 (A) NATIONAL STRATEGY ON SEMICON6 DUCTOR RESEARCH.— 

7 (i) DEVELOPMENT.—In coordination 

8 with the Secretary of Defense, the Sec9 retary of Energy, the Secretary of State, 

10 the Secretary of Commerce, the National 

11 Science Foundation, and the Director of 

12 the National Institute of Standards and 

13 Technology and in consultation with the 

14 semiconductor industry and academia, de15 velop a national strategy on semiconductor 

16 research, including guidance for the fund17 ing of research. 

18 (ii) REPORTING AND UPDATES.—Not 

19 less frequently than once every 5 years, to 

20 update the strategy developed under clause 

21 (i) and to submit the revised strategy to 

22 the appropriate committees of Congress. 

23 (B) FOSTERING COORDINATION OF RE24 SEARCH AND DEVELOPMENT.—To foster the coVerDate Sep 11 2014 21:06 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H7178.IH H7178

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1 ordination of semiconductor research and devel2 opment. 

3 (d) ADVANCED PACKAGING NATIONAL MANUFAC4 TURING INSTITUTE.— 

5 (1) AUTHORIZATION.—The Secretary of Com6 merce may, in coordination with the private sector, 

7 establish in the Department of Commerce an insti8 tute on advanced packaging and manufacturing. 

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

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

11 (A) To establish United States leadership 

12 in advanced microelectronic packaging. 

13 (B) To promote standards development for 

14 such packaging. 

15 (C) To foster public-private partnerships 

16 relevant to such packaging. 

17 (D) To develop research and development 

18 programs to advance technology development 

19 relevant to such packaging. 

20 (E) To establish an investment fund— 

21 (i) to support a startup domestic ad22 vanced microelectronic packaging eco23 system; 

24 (ii) to accelerate technology transfer; 

25 and 


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1 (iii) to ensure domestic supply chains; 

2 and 

3 (F) to work with the Secretary of Labor 

4 and the private sector to develop workforce 

5 training programs and apprenticeships in ad6 vanced microelectronic packaging capabilities. 

7 (e) AUTHORIZATIONS OF APPROPRIATIONS.— 

8 (1) NATIONAL SEMICONDUCTOR TECHNOLOGY

9 CENTER.—There is authorized to be appropriated to 

10 establish a national semiconductor technology center 

11 to conduct research and prototyping of advance 

12 semiconductors with participation of the private sec13 tor, the Secretary of Defense, the Secretary of En14 ergy, the National Science Foundation, and the Di15 rector of the National Institute of Standards and 

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

17 with such amount to remain available for such pur18 pose through fiscal year 2030. 

19 (2) ELECTRONICS RESURGENCE INITIATIVE.— 

20 There is authorized to be appropriated to carry out 

21 the Electronics Resurgence Initiative of the Defense 

22 Advanced Research Projects Agency, 

23 $2,000,000,000 for fiscal year 2021, with such 

24 amount to remain available for such purpose 

25 through fiscal year 2025. 


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1 (3) SEMICONDUCTOR BASIC RESEARCH AT NA2 TIONAL SCIENCE FOUNDATION.—There is authorized 

3 to be appropriated to carry out programs at the Na4 tional Science Foundation on semiconductor basic 

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

6 such amount to remain available for such purpose 

7 through fiscal year 2025. 

8 (4) SEMICONDUCTOR BASIC RESEARCH AT DE9 PARTMENT OF ENERGY.—There is authorized to be 

10 appropriated to carry out programs at the Depart11 ment of Energy on semiconductor basic research, 

12 $2,000,000,000 for fiscal year 2021, with such 

13 amount to remain available for such purpose 

14 through fiscal year 2025. 

15 (5) ADVANCED PACKAGING NATIONAL MANU16 FACTURING INSTITUTE.—There is authorized to be 

17 appropriated to carry out subsection (d), 

18 $5,000,000,000 for fiscal year 2021, with such 

19 amount to remain available for such purpose 

20 through fiscal year 2025— 

21 (A) of which, $500,000,000 shall be avail22 able to carry out paragraph (2)(D) of such sub23 section; and 


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1 (B) of which, $500,000,000 shall be avail2 able to carry out paragraph (2)(E) of such sub3 section. 

Æ 


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