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 pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To restore American leadership in semiconductor manufac-
turing by increasing Federal incentives in order to enable 
advanced research and development, secure the supply 
chain, and ensure long-term national security and eco-
nomic competitiveness. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Creating Helpful In-
centives to Produce Semiconductors for America Act’’ or 
the ‘‘CHIPS for America Act’’. 
SEC. 2. SEMICONDUCTOR INVESTMENT TAX CREDIT. 
(a) ESTABLISHMENT OF CREDIT.—Subpart E of part 
IV of subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by inserting after section 48C 
the following: 
‘‘SEC. 48D. QUALIFYING SEMICONDUCTOR EQUIPMENT 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying semiconductor equipment credit for any taxable 
year is the applicable percentage of— 
‘‘(1) the basis of any qualified semiconductor 
equipment placed in service during such taxable 
year, 
‘‘(2) any qualified semiconductor manufacturing 
facility investment expenditures incurred during 
such taxable year, and 
‘‘(3) any expenses incurred by the taxpayer dur-
ing such taxable year with respect to entering into 
a lease (including renewal or extension of a lease) 
for qualified semiconductor equipment. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a), the applicable percentage is— 
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‘‘(1) 40 percent in the case of any qualified 
semiconductor equipment which is placed in service 
before January 1, 2025, or any qualified semicon-
ductor manufacturing facility investment expendi-
tures or expenses described in subsection (a)(3) 
which are incurred before such date, 
‘‘(2) 30 percent in the case of any such equip-
ment which is placed in service, or any such expendi-
tures or expenses which are incurred, after Decem-
ber 31, 2024, and before January 1, 2026, 
‘‘(3) 20 percent in the case of any such equip-
ment which is placed in service, or any such expendi-
tures or expenses which are incurred, after Decem-
ber 31, 2025, and before January 1, 2027, and 
‘‘(4) 0 percent in the case of any such equip-
ment which is placed in service, or any such expendi-
tures or expenses which are incurred, after Decem-
ber 31, 2026. 
‘‘(c) QUALIFIED SEMICONDUCTOR EQUIPMENT.— 
For purposes of this section, the term ‘qualified semicon-
ductor equipment’ means any property— 
‘‘(1) which has been identified by the Secretary, 
in consultation with the Secretary of Commerce, as 
machinery or equipment that is designed and used 
to— 
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‘‘(A) manufacture or process semiconduc-
tors, or 
‘‘(B) perform research with respect to 
semiconductors, 
‘‘(2) which is placed in service in the United 
States by the taxpayer, and 
‘‘(3) with respect to which depreciation (or am-
ortization in lieu of depreciation) is allowable. 
‘‘(d) QUALIFIED SEMICONDUCTOR MANUFACTURING 
FACILITY INVESTMENT EXPENDITURES.—For purposes 
of this section, the term ‘qualified semiconductor manufac-
turing facility investment expenditure’ means any amount 
properly chargeable to capital account— 
‘‘(1) for property for which depreciation is al-
lowable under section 168, and 
‘‘(2) in connection with the construction or up-
grading of any facility located in the United States 
which substantially operates qualified semiconductor 
equipment, including— 
‘‘(A) costs relating to— 
‘‘(i) acquiring or upgrading an exist-
ing building, or 
‘‘(ii) construction of a new building, 
and 
‘‘(B) property such as— 
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‘‘(i) integrated systems, fixtures, pip-
ing, movable partitions, and lighting, and 
‘‘(ii) any property which has been 
identified by the Secretary, in consultation 
with the Secretary of Commerce, as nec-
essary or adapted to— 
‘‘(I) reduce contamination, or 
‘‘(II) control air flow, tempera-
ture, humidity, chemical purity, or 
other environmental conditions or 
manufacturing tolerances. 
‘‘(e) CERTAIN
PROGRESS
EXPENDITURE
RULES 
MADE APPLICABLE.—Rules similar to the rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990) shall apply for purposes of sub-
section (a). 
‘‘(f) TREATMENT OF CREDIT.—The amount of the 
credit determined under this section with respect to any 
qualified semiconductor equipment placed in service before 
January 1, 2027, or any qualified semiconductor manufac-
turing facility investment expenditures incurred before 
such date, shall be treated as a credit allowable under sub-
part C (and not allowable under section 38). 
‘‘(g) DENIAL OF DOUBLE BENEFIT.— 
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‘‘(1) REDUCTION OF BASIS.—If a credit is de-
termined under this section with respect to any 
property, the basis of such property shall be reduced 
by the amount of the credit so determined. 
‘‘(2) OTHER CREDITS.—No credit shall be al-
lowed under any provision of this chapter with re-
spect to any amount taken in account in determining 
the credit allowed to a taxpayer under this section. 
‘‘(h) RULES RELATING TO LEASED PROPERTY.—For 
purposes of subsection (a)(3), rules similar to the rules 
under section 48(d) (as in effect on the day before the 
date of the enactment of the Revenue Reconciliation Act 
of 1990) shall apply. 
‘‘(i) DISALLOWANCE.—No credit shall be allowed 
under this section with respect to any qualified semicon-
ductor equipment which is used predominantly outside the 
United States. 
‘‘(j) PARTNERSHIPS.—In the case of a credit under 
subsection (a) which is determined at the partnership 
level, with respect to any partner which is exempt from 
taxation under section 501(a), such partner may elect to 
transfer their distributive share of such credit to any other 
partner in the partnership. 
‘‘(k) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
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to carry out the purposes of this section, including any 
such measures as are deemed appropriate to avoid abuse 
or fraud with respect to the credit allowed under this sec-
tion.’’. 
(b) TAX ON BASE EROSION PAYMENTS OF TAX-
PAYERS WITH SUBSTANTIAL GROSS RECEIPTS.—Section 
59A(b)(1)(B)(ii) of the Internal Revenue Code of 1986 is 
amended— 
(1) in subclause (II), by striking the period at 
the end and inserting ‘‘, plus’’, and 
(2) by adding at the end the following: 
‘‘(III) 
the 
credit 
determined 
under section 48D for the taxable 
year.’’. 
(c) INVESTMENT CREDIT.—Section 46 of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and’’ 
at the end of paragraph (5), by striking the period at the 
end of paragraph (6) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(7) the qualifying semiconductor equipment 
credit.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
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serting after the item relating to section 48C the following 
new item: 
‘‘Sec. 48D. Qualifying semiconductor equipment credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any qualified semiconductor 
equipment (as defined in subsection (c) of section 48D) 
placed in service after the date of enactment of this Act, 
or any qualified semiconductor manufacturing facility in-
vestment expenditure (as defined in subsection (d) of such 
section) incurred after such date. 
SEC. 
3. 
BUILDING 
UNITED 
STATES 
CAPACITY 
FOR 
VERIFICATION AND MANUFACTURING OF AD-
VANCED MICROELECTRONICS. 
(a) PROGRAM.—The Secretary of Commerce, acting 
through the Director of the National Institute of Stand-
ards and Technology, shall carry out a program of re-
search and development investment to enable advances 
and breakthroughs in measurement science, standards, 
material characterization, instrumentation, testing, and 
manufacturing capabilities that will accelerate the under-
lying research and development for design, development, 
and manufacturability of next generation microelectronics 
and ensure the competitiveness and leadership of the 
United States within this sector. 
(b) COMPONENTS.—The program required by sub-
section (a) shall cover the following: 
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(1) Advanced metrology and characterization 
for manufacturing of microchips using 3 nanometer 
transistor processes or more advanced processes. 
(2) Metrology for security and supply chain 
verification. 
(3) Creation of 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 manufac-
turing. Such institute may emphasize the following: 
(A) Research to support the virtualization 
and automation of maintenance of semicon-
ductor machinery. 
(B) Development of new advanced test, as-
sembly and packaging capabilities. 
(C) Developing and deploying educational 
and skills training curricula needed to support 
the industry sector and ensure the U.S. can 
build and maintain a trusted and predictable 
talent pipeline. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
amounts as follows: 
(1) To carry out subsection (b)(1), $10,000,000 
for each of fiscal years 2021 through 2025. 
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(2) To carry out subsection (b)(2), $10,000,000 
for each of fiscal years 2021 through 2025. 
(3) To carry out subsection (b)(3), $30,000,000 
for each of fiscal years 2021 through 2025. 
SEC. 4. FEDERAL GRANTS TO MATCH STATE INCENTIVES. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Select Committee on Intelligence, 
the Committee on Commerce, Science, and 
Transportation, the Committee on Foreign Re-
lations, the Committee on Armed Services, and 
the Committee on Homeland Security and Gov-
ernmental Affairs 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 Com-
mittee on Science, Space, and Technology, and 
the Committee on Homeland Security of the 
House of Representatives; 
(2) the term ‘‘covered incentive’’— 
(A) means an incentive offered by a gov-
ernmental entity to a private entity for the pur-
poses of building within the jurisdiction of the 
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governmental entity a fabrication (or other es-
sential) facility relating to the manufacturing of 
semiconductors; and 
(B) includes any tax incentive (such as an 
incentive or reduction with respect to employ-
ment or payroll taxes or a tax abatement with 
respect to personal or real property), a work-
force-related incentive (including a grant agree-
ment relating to workforce training or voca-
tional education), any concession with respect 
to real property, and any other incentive deter-
mined appropriate by the Secretary, in con-
sultation with the Secretary of State; 
(3) the term ‘‘governmental entity’’ means a 
State or local government; and 
(4) the term ‘‘Secretary’’ means the Secretary 
of Commerce. 
(b) GRANTS.— 
(1) IN GENERAL.—The Secretary shall establish 
in the Department of Commerce a program that, in 
accordance with the requirements of this section, 
provides grants to governmental entities that offer 
covered incentives. 
(2) PROCEDURE.— 
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(A) IN GENERAL.—A governmental entity 
that offers a covered incentive and that desires 
to receive a grant under this subsection shall 
submit to the Secretary an application that de-
scribes the covered incentive offered by the gov-
ernmental entity. 
(B) CONDITIONS
FOR
APPROVAL.—The 
Secretary shall approve an application sub-
mitted by a governmental entity under subpara-
graph (A)— 
(i) upon confirmation by the Secretary 
that the private entity to which the govern-
mental entity has offered the covered in-
centive to which the application relates has 
agreed to build in the applicable jurisdic-
tion a facility described in subsection 
(a)(2)(A); and 
(ii) if the Secretary determines that 
building the facility described in clause (i) 
is in the interest of the United States. 
(3) AMOUNT.—The amount of a grant provided 
by the Secretary to a governmental entity under this 
subsection shall be in an amount that is not less 
than the value of the applicable covered incentive of-
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fered by the governmental entity, as determined by 
the Secretary. 
(4) CLAWBACK.—The Secretary shall recover 
the full amount of a grant made to a governmental 
entity under this subsection with respect to a cov-
ered incentive offered by the governmental entity 
if— 
(A) as of the date that is 5 years after the 
date on which the Secretary makes the grant, 
the facility to which the covered incentive re-
lates has not been completed; or 
(B) during the term of the grant, the pri-
vate entity to which the covered incentive was 
offered engages in any joint research or tech-
nology licensing effort— 
(i) with the Government of the Peo-
ple’s Republic of China, the Government of 
the Russian Federation, the Government of 
Iran, or the Government of North Korea; 
and 
(ii) that relates to a sensitive tech-
nology or product, as determined by the 
Secretary. 
(c) 
CONSULTATION
AND
COORDINATION
RE-
QUIRED.—In carrying out the program established under 
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subsection (b), the Secretary shall consult and coordinate 
with the Secretary of State. 
(d) GAO REVIEWS.—The Comptroller General of the 
United States shall— 
(1) not later than 2 years after the date of en-
actment of this Act, and biennially thereafter until 
the date that is 10 years after that date of enact-
ment, conduct a review of the program established 
under subsection (b), which shall include a deter-
mination of the number of grants made under that 
program during the period covered by the review 
that failed to comply with a requirement under this 
section; and 
(2) submit to the appropriate committees of 
Congress the results of each review conducted under 
paragraph (1). 
(e) TRUST FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a trust fund (re-
ferred to in this subsection as the ‘‘Trust Fund’’), 
consisting of amounts transferred to the Trust Fund 
under paragraph (2) and any amounts that may be 
credited to the Trust Fund under paragraph (3). 
(2) TRANSFER OF AMOUNTS.— 
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(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary of the Treasury shall 
transfer to the Trust Fund, from the general 
fund of the Treasury, for fiscal year 2021 and 
each fiscal year thereafter, an amount equiva-
lent to the amount received into the general 
fund during that fiscal year and attributable to 
duties imposed under section 301 of the Trade 
Act of 1974 (19 U.S.C. 2411). 
(B) LIMITATIONS.— 
(i) LIMITATION ON TRANSFERS.—The 
amount transferred to the Trust Fund 
under subparagraph (A) in a fiscal year 
may not exceed $10,000,000,000. 
(ii) LIMITATION
ON
TOTAL
BAL-
ANCE.—The total amount in the Trust 
Fund at any one time may not exceed 
$10,000,000,000. 
(C) FREQUENCY
OF
TRANSFERS.—The 
Secretary shall transfer amounts required to be 
transferred to the Trust Fund under this para-
graph not less frequently than quarterly from 
the general fund of the Treasury to the Trust 
Fund. 
(3) INVESTMENT OF AMOUNTS.— 
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(A) INVESTMENT OF AMOUNTS.—The Sec-
retary shall invest such portion of the Trust 
Fund as is not required to meet current with-
drawals 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 in-
terest on, and the proceeds from the sale or re-
demption of, any obligations held in the Trust 
Fund shall be credited to and form a part of 
the Trust Fund. 
(4) AVAILABILITY
OF
AMOUNTS
IN
TRUST 
FUND.—Amounts in the Trust Fund shall be avail-
able, as provided in advance in an appropriations 
Act, to the Secretary to make grants under this sec-
tion. 
SEC. 5. DEPARTMENT OF DEFENSE SUPPORT FOR SEMI-
CONDUCTOR TECHNOLOGIES AND RELATED 
TECHNOLOGIES. 
(a) RDT&E 
AND
WORKFORCE
TRAINING
EF-
FORTS.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall, in consultation with the Secretary of Com-
merce and the Secretary of Labor, establish and im-
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plement a priority in the use of amounts available to 
the Department of Defense for research, develop-
ment, test, and evaluation, and for workforce train-
ing, for programs, projects, and activities in connec-
tion with semiconductor technologies and related 
technologies. 
(2) DISCHARGE.—The Secretary of Defense 
shall carry out paragraph (1) through the Office of 
the Under Secretary of Defense for Research and 
Engineering or such other component of the Depart-
ment of Defense as the Secretary considers appro-
priate. 
(3) FUNDING.—Of the amount authorized to be 
appropriated for each fiscal year for the Department 
of Defense for research, development, test, and eval-
uation, not less the $50,000,000 shall be available in 
such fiscal year for programs, projects, and activities 
described in paragraph (1) in furtherance of the pri-
ority required by that paragraph. 
(b) DPA EFFORTS.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the 
President shall submit to Congress a report on, and 
shall commence implementation of, a plan for use by 
the Department of Defense of authorities available 
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in title III of the Defense Production Act of 1950 
(50 U.S.C. 4531 et seq.) to establish and enhance 
a domestic production capability for semiconductor 
technologies and related technologies, if funding is 
available for that purpose. 
(2) CONSULTATION.—The President shall de-
velop the plan required by paragraph (1) in con-
sultation with the Secretary of Defense, the Sec-
retary of State, the Secretary of Commerce, and ap-
propriate stakeholders in the private sector. 
SEC. 6. DEPARTMENT OF COMMERCE STUDY ON STATUS OF 
SEMICONDUCTOR TECHNOLOGIES IN THE 
UNITED STATES INDUSTRIAL BASE. 
(a) IN GENERAL.—Commencing not later than 90 
days after the date of the enactment of this Act, the Sec-
retary of Commerce shall undertake a survey, using au-
thorities in section 705 of the Defense Production Act (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 signifi-
cant interdependencies between the United States indus-
trial base and the industrial base of foreign countries with 
respect to the manufacture and design of semiconductors. 
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(b) RESPONSE TO SURVEY.—The Secretary shall en-
sure compliance with the survey from among all relevant 
potential respondents, including the following: 
(1) Corporations, partnerships, associations, or 
any other organized groups domiciled and with sub-
stantial operations in the United States. 
(2) Corporations, partnerships, associations, or 
any other organized groups domiciled in the United 
States with operations outside the United States. 
(3) Foreign domiciled corporations, partner-
ships, associations, or any other organized groups 
with substantial operations or business presence in, 
or substantial revenues derived from, the United 
States. 
(4) Foreign domiciled corporations, partner-
ships, associations, or any other organized groups in 
defense treaty or assistance countries where the pro-
duction of the entity concerned involves critical tech-
nologies covered by section 3. 
(c) INFORMATION REQUESTED.—The information 
sought from a responding entity pursuant to the survey 
required by subsection (a) shall include, at minimum, in-
formation on the following with respect to the manufac-
ture or design of semiconductors by such entity: 
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(1) An identification of the geographic scope of 
operations. 
(2) Information on relevant cost structures. 
(3) An identification of types of semiconductor 
equipment in operation at such entity. 
(4) An identification of all relevant raw mate-
rials and semi-finished goods and components 
sourced domestically and abroad by such entity. 
(5) Specifications of the semiconductors manu-
factured or designed by such entity, descriptions of 
the end-uses of such semiconductors, and a descrip-
tion of any technical support provided to end-users 
of such semiconductors by such entity. 
(6) Information on domestic and export market 
sales by such entity. 
(7) Information on the financial performance, 
including income and expenditures, of such entity. 
(8) A list of all foreign and domestic subsidies, 
and any other financial incentives, received by such 
entity in each market in which such entity operates. 
(9) A list of information requests from the Peo-
ple’s Republic of China to such entity, and a de-
scription of the nature of each request and the type 
of information provided. 
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(10) Information on any joint ventures, tech-
nology licensing agreements, and cooperative re-
search or production arrangements of such entity. 
(11) A description of efforts by such entity to 
evaluate and control supply chain risks it faces. 
(12) A list and description of any sales, licens-
ing agreements, or partnerships between such entity 
and the People’s Liberation Army or People’s Armed 
Police, including any business relationships with en-
tities through which such sales, licensing agree-
ments, or partnerships may occur. 
SEC. 7. FUNDING FOR DEVELOPMENT AND ADOPTION OF 
SECURE MICROELECTRONICS AND SECURE 
MICROELECTRONICS SUPPLY CHAINS. 
(a) MULTILATERAL MICROELECTRONICS SECURITY 
FUND.— 
(1) ESTABLISHMENT OF FUND.—There is es-
tablished in the Treasury of the United States a 
trust fund, to be known as the ‘‘Multilateral Micro-
electronics Security Fund’’ (in this section referred 
to as the ‘‘Fund’’), consisting of amounts deposited 
into the Trust Fund under paragraph (2) and any 
amounts that may be credited to the Trust Fund 
under paragraph (3). 
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(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There 
are 
authorized 
to 
be 
appropriated 
$750,000,000 to be deposited in the Fund. 
(3) INVESTMENT OF AMOUNTS.— 
(A) INVESTMENT OF AMOUNTS.—The Sec-
retary 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 in-
terest on, and the proceeds from the sale or re-
demption 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 subpara-
graph (B), amounts in the Fund shall be avail-
able, as provided in advance in an appropria-
tions Act, to the Secretary of State— 
(i) to provide funding through the 
common funding mechanism described in 
subsection (b)(1) to support the develop-
ment and adoption of secure microelec-
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tronics and secure microelectronics supply 
chains; and 
(ii) to otherwise carry out this section. 
(B) AVAILABILITY CONTINGENT ON INTER-
NATIONAL AGREEMENT.—Amounts in the Fund 
shall be available to the Secretary of State on 
and after the date on which the Secretary en-
ters into an agreement with the governments of 
countries that are partners of the United States 
to participate in the common funding mecha-
nism under paragraph (1) of subsection (b) and 
the commitments described in paragraph (2) of 
that subsection. 
(5) AVAILABILITY OF AMOUNTS.— 
(A) IN GENERAL.—Amounts in the Fund 
shall remain available through the end of the 
tenth fiscal year beginning after the date of the 
enactment of this Act. 
(B) 
REMAINDER
TO
TREASURY.—Any 
amounts remaining in the Fund after the end 
of the fiscal year described in subparagraph (A) 
shall be deposited in the general fund of the 
Treasury. 
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(b) COMMON FUNDING MECHANISM FOR DEVELOP-
MENT AND ADOPTION OF SECURE MICROELECTRONICS 
AND SECURE MICROELECTRONICS SUPPLY CHAINS.— 
(1) IN GENERAL.—The Secretary of State, in 
consultation with the Secretary of Commerce, the 
Secretary of Defense, the Secretary of Homeland Se-
curity, the Secretary of the Treasury, and the Direc-
tor of National Intelligence, shall seek to establish a 
common funding mechanism, in coordination with 
the governments of countries that are partners of 
the United States, that uses amounts from the 
Fund, and amounts committed by such governments, 
to support the development and adoption of secure 
microelectronics and secure microelectronics supply 
chains. 
(2) MUTUAL COMMITMENTS.—The Secretary of 
State, in consultation with the United States Trade 
Representative and the Secretary of Commerce, shall 
seek to negotiate a set of mutual commitments with 
the governments of countries that are partners of 
the United States upon which to condition any ex-
penditure of funds pursuant to the common funding 
mechanism described in paragraph (1). Such com-
mitments shall, at a minimum— 
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(A) establish transparency requirements 
for any subsidies or other financial benefits (in-
cluding revenue foregone) provided to microelec-
tronics firms located in or outside such coun-
tries; 
(B) establish consistent policies with re-
spect to countries that— 
(i) are not participating in the com-
mon funding mechanism; and 
(ii) do not meet transparency require-
ments established under subparagraph (A); 
(C) promote harmonized treatment of 
microelectronics 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 com-
mon external policies to address nonmarket 
economies as the behavior of such countries 
pertains to microelectronics; and 
(E) align policies on supply chain integrity 
and microelectronics security. 
(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 
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amounts in the Fund are available under subsection 
(a)(3), the Secretary of State shall submit to 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 are partners of the United States 
to providing funding for the common funding mecha-
nism described in subsection (b)(1) and the specific 
amount so committed; 
(2) the criteria established for expenditure of 
funds through the common funding mechanism; 
(3) how, and to whom, amounts have been ex-
pended from the Fund; 
(4) amounts remaining in the Fund; 
(5) the progress of the Secretary of State to-
ward entering into an agreement with the govern-
ments of countries that are partners of the United 
States to participate in the common funding mecha-
nism and the commitments described in subsection 
(b)(2); and 
(6) any additional authorities needed to en-
hance the effectiveness of the Fund in achieving the 
security goals of the United States. 
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SEC. 8. ADVANCED SEMICONDUCTOR RESEARCH AND DE-
SIGN. 
(a) APPROPRIATE COMMITTEES OF CONGRESS.—In 
this section, the term ‘‘appropriate committees of Con-
gress’’ means— 
(1) the Select Committee on Intelligence, the 
Committee on Commerce, Science, and Transpor-
tation, the Committee on Foreign Relations, the 
Committee on Armed Services, and the Committee 
on Homeland Security and Governmental Affairs of 
the Senate; and 
(2) the Permanent Select Committee on Intel-
ligence, the Committee on Energy and Commerce, 
the Committee on Foreign Affairs, the Committee 
on Armed Services, the Committee on Science, 
Space, and Technology, and the Committee on 
Homeland Security of the House of Representatives. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the leadership of the United States in semicon-
ductor technology and innovation is critical to the eco-
nomic growth and national security of the United States. 
(c) SUBCOMMITTEE ON SEMICONDUCTOR LEADER-
SHIP.— 
(1) ESTABLISHMENT
REQUIRED.—The Presi-
dent shall establish in the National Science and 
Technology Council a subcommittee on matters re-
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lating to leadership of the United States in semicon-
ductor technology and innovation. 
(2) DUTIES.—The duties of the subcommittee 
established under paragraph (1) are as follows: 
(A) NATIONAL
STRATEGY
ON
SEMICON-
DUCTOR RESEARCH.— 
(i) DEVELOPMENT.—In coordination 
with the Secretary of Defense, the Sec-
retary of Energy, the Secretary of State, 
the Secretary of Commerce, the National 
Science Foundation, and the Director of 
the National Institute of Standards and 
Technology and in consultation with the 
semiconductor industry and academia, de-
velop a national strategy on semiconductor 
research, including guidance for the fund-
ing of research. 
(ii) REPORTING AND UPDATES.—Not 
less frequently than once every 5 years, to 
update the strategy developed under clause 
(i) and to submit the revised strategy to 
the appropriate committees of Congress. 
(B) FOSTERING
COORDINATION
OF
RE-
SEARCH AND DEVELOPMENT.—To foster the co-
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