H. R. 6395—1457 
(A) the Select Committee on Intelligence, the Com-
mittee 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 Com-
mittee on Appropriations, the Committee on Financial 
Services, the Committee on Homeland Security, and the 
Committee on Ways and Means of the House of Representa-
tives.. 
(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 edu-
cation), any concession with respect to real property, 
funding for research and development with respect to semi-
conductors, 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 busi-
ness in a foreign country; and 
(B) includes— 
(i) any person owned by, controlled by, or subject 
to the jurisdiction or direction of a an entity listed 
in subparagraph (A);
H. R. 6395—1458 
(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, relation-
ship, 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 subpara-
graph (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 jurisdic-
tion 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 (com-
monly 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) sections 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
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(E) determined by the Secretary, in consultation with 
the Secretary of Defense and the Director of National Intel-
ligence, 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. 9902. 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 facili-
ties 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 cov-
ered entity shall demonstrate to the Secretary, in the 
application submitted by the covered entity under subpara-
graph (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 commu-
nity investment, including through— 
(aa) training and education benefits paid 
by the covered entity; and 
(bb) programs to expand employment 
opportunity for economically disadvantaged 
individuals; and 
(III) secured commitments from regional edu-
cational and training entities and institutions of 
higher education to provide workforce training, 
including programming for training and job place-
ment 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)—
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(i) the Secretary may not approve the application 
unless the Secretary— 
(I) confirms that the covered entity has satis-
fied 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 Depart-
ment of Defense; and 
(IV) when practicable, a consortium that is 
considered a covered entity includes a small busi-
ness concern, as defined under section 3 of the 
Small Business Act (15 U.S.C. 632), notwith-
standing section 121.103 of title 13, Code of Fed-
eral 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 sub-
section. 
(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 finan-
cial assistance award under this subsection may only use the 
financial assistance award amounts to—
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(A) finance the construction, expansion, or moderniza-
tion of a facility or equipment to be used for semiconductors 
described in paragraph (1), as documented in the applica-
tion submitted by the covered entity under paragraph 
(2)(B), as determined necessary by the Secretary for pur-
poses 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 Sec-
retary may waive elements of the clawback provisions 
incorporated in each major award after— 
(i) making a formal determination that cir-
cumstances 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 pro-
vided. 
(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
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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 estab-
lished under subsection (a), which shall include, at a min-
imum— 
(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. 9903. DEPARTMENT OF DEFENSE. 
(a) DEPARTMENT OF DEFENSE EFFORTS.— 
(1) IN GENERAL.—Subject to the availability of appropria-
tions for such purposes, the Secretary of Defense, in consulta-
tion 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 partner-
ship 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 sec-
tors, and other national security applications. Such incentives 
may include the use of grants under section 9902, and providing 
incentives for the creation, expansion, or modernization of one 
or more commercially competitive and sustainable microelec-
tronics manufacturing or advanced research and development 
facilities in the United States.
H. R. 6395—1463 
(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 micro-
electronics 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 microelec-
tronics, 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 compo-
nents 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 partici-
pants, 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 per-
forming 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 pre-
sented 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 COMMER-
CIAL ENTITIES.—Arrangements entered into to carry out para-
graph (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
H. R. 6395—1464 
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 appro-
priations 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 toler-
ant, 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 require-
ments and designation of responsible officials, for the 
maintenance of capabilities to produce trusted and assured 
microelectronics to support current and legacy defense sys-
tems, other government systems essential for national secu-
rity, and critical infrastructure of the United States, espe-
cially 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 Science, 
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 tech-
nical, 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
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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 appropria-
tions for such purposes, the Secretary of Defense may establish 
a national network for microelectronics research and develop-
ment— 
(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. 9904. DEPARTMENT OF COMMERCE STUDY ON STATUS OF MICRO-
ELECTRONICS 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, Secretary of Home-
land 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 sup-
port 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, associa-
tions, or any other organized groups with a physical presence 
of any kind in the United States.