Title: CHIPS for America Act
Policy area: Commerce

Summary:
Creating Helpful Incentives to Produce Semiconductors for America Act or the CHIPS for America Act
This bill establishes investments and incentives to support U.S. semiconductor manufacturing, research and development, and supply chain security.
Specifically, the bill provides an income tax credit for semiconductor equipment or manufacturing facility investment through 2026. The bill also establishes a trust fund to be allocated upon reaching an agreement with foreign government partners to promote (1) consistency in policies related to microelectronics, (2) transparency in microelectronic supply chains, and (3) alignment in policies towards nonmarket economies.
The Department of Commerce shall, through the National Institute of Standards and Technology (NIST), carry out a program of research and development investment to accelerate the design, development, and manufacturability of next generation microelectronics, including through the creation of a Manufacturing USA institute for semiconductor manufacturing. Commerce shall also establish a program to match state and local government incentives offered to private entities for the purposes of building fabrication facilities relating to semiconductor manufacturing. Further, Commerce shall assess the capabilities of the U.S. industrial base to support the national defense in light of the global nature of supply chains and interdependencies between the industrial bases of the U.S. and foreign countries with respect to the manufacture and design of semiconductors.
The Department of Defense shall prioritize the use of specified available amounts for programs, projects, and activities in connection with semiconductor and related technologies.
The President shall establish within NIST a subcommittee on matters relating to U.S. leadership in semiconductor technology and innovation, which shall develop a national strategy on semiconductor research.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3933 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3933

   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 SENATE OF THE UNITED STATES

                             June 10, 2020

  Mr. Cornyn (for himself, Mr. Warner, Mr. Risch, Mr. Rubio, and Ms. 
    Sinema) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Creating Helpful Incentives 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 during 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--
            ``(1) 40 percent in the case of any qualified semiconductor 
        equipment which is placed in service before January 1, 2025, or 
        any qualified semiconductor manufacturing facility investment 
        expenditures or expenses described in subsection (a)(3) which 
        are incurred before such date,
            ``(2) 30 percent in the case of any such equipment which is 
        placed in service, or any such expenditures or expenses which 
        are incurred, after December 31, 2024, and before January 1, 
        2026,
            ``(3) 20 percent in the case of any such equipment which is 
        placed in service, or any such expenditures or expenses which 
        are incurred, after December 31, 2025, and before January 1, 
        2027, and
            ``(4) 0 percent in the case of any such equipment which is 
        placed in service, or any such expenditures or expenses which 
        are incurred, after December 31, 2026.
    ``(c) Qualified Semiconductor Equipment.--For purposes of this 
section, the term `qualified semiconductor 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--
                    ``(A) manufacture or process semiconductors, 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 amortization 
        in lieu of depreciation) is allowable.
    ``(d) Qualified Semiconductor Manufacturing Facility Investment 
Expenditures.--For purposes of this section, the term `qualified 
semiconductor manufacturing facility investment expenditure' means any 
amount properly chargeable to capital account--
            ``(1) for property for which depreciation is allowable 
        under section 168, and
            ``(2) in connection with the construction or upgrading of 
        any facility located in the United States which substantially 
        operates qualified semiconductor equipment, including--
                    ``(A) costs relating to--
                            ``(i) acquiring or upgrading an existing 
                        building, or
                            ``(ii) construction of a new building, and
                    ``(B) property such as--
                            ``(i) integrated systems, fixtures, piping, 
                        movable partitions, and lighting, and
                            ``(ii) any property which has been 
                        identified by the Secretary, in consultation 
                        with the Secretary of Commerce, as necessary or 
                        adapted to--
                                    ``(I) reduce contamination, or
                                    ``(II) control air flow, 
                                temperature, humidity, chemical purity, 
                                or other environmental conditions or 
                                manufacturing tolerances.
    ``(e) Certain Progress Expenditure Rules Made Applicable.--Rules 
similar to the rules of subsections (c)(4) and (d) of section 46 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990) shall apply for purposes of subsection (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 manufacturing facility investment expenditures incurred 
before such date, shall be treated as a credit allowable under subpart 
C (and not allowable under section 38).
    ``(g) Denial of Double Benefit.--
            ``(1) Reduction of basis.--If a credit is determined 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 allowed under any 
        provision of this chapter with respect 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 semiconductor 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 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 
section.''.
    (b) Tax on Base Erosion Payments of Taxpayers 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 Internal 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 inserting 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 investment expenditure (as defined in subsection (d) of such 
section) incurred after such date.

SEC. 3. BUILDING UNITED STATES CAPACITY FOR VERIFICATION AND 
              MANUFACTURING OF ADVANCED MICROELECTRONICS.

    (a) Program.--The Secretary of Commerce, acting through the 
Director of the National Institute of Standards and Technology, shall 
carry out a program of research and development investment to enable 
advances and breakthroughs in measurement science, standards, material 
characterization, instrumentation, testing, and manufacturing 
capabilities that will accelerate the underlying research and 
development for 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 subsection (a) shall cover 
the following:
            (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 manufacturing. Such institute may emphasize the 
        following:
                    (A) Research to support the virtualization and 
                automation of maintenance of semiconductor machinery.
                    (B) Development of new advanced test, assembly 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.
            (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 Congress'' means--
                    (A) the Select Committee on Intelligence, the 
                Committee on Commerce, Science, and Transportation, the 
                Committee on Foreign Relations, the Committee on Armed 
                Services, and the Committee on Homeland Security and 
                Governmental 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 
                Committee 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 governmental 
                entity to a private entity for the purposes of building 
                within the jurisdiction of the governmental entity a 
                fabrication (or other essential) facility relating to 
                the manufacturing of semiconductors; and
                    (B) includes any tax incentive (such as an 
                incentive or reduction with respect to employment or 
                payroll taxes or a tax abatement with respect to 
                personal or real property), a workforce-related 
                incentive (including a grant agreement relating to 
                workforce training or vocational education), any 
                concession with respect to real property, and any other 
                incentive determined appropriate by the Secretary, in 
                consultation 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.--
                    (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 describes the covered incentive 
                offered by the governmental entity.
                    (B) Conditions for approval.--The Secretary shall 
                approve an application submitted by a governmental 
                entity under subparagraph (A)--
                            (i) upon confirmation by the Secretary that 
                        the private entity to which the governmental 
                        entity has offered the covered incentive to 
                        which the application relates has agreed to 
                        build in the applicable jurisdiction 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 offered 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 covered 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 relates has not been 
                completed; or
                    (B) during the term of the grant, the private 
                entity to which the covered incentive was offered 
                engages in any joint research or technology licensing 
                effort--
                            (i) with the Government of the People'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 technology 
                        or product, as determined by the Secretary.
    (c) Consultation and Coordination Required.--In carrying out the 
program established under 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 enactment of 
        this Act, and biennially thereafter until the date that is 10 
        years after that date of enactment, conduct a review of the 
        program established under subsection (b), which shall include a 
        determination 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 (referred 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.--
                    (A) In general.--Subject to subparagraph (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 
                equivalent 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 balance.--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 paragraph not less frequently 
                than quarterly from the general fund of the Treasury to 
                the Trust Fund.
            (3) Investment of amounts.--
                    (A) Investment of amounts.--The Secretary shall 
                invest such portion of the Trust Fund as is not 
                required to meet current withdrawals in interest-
                bearing obligations of the United States or in 
                obligations guaranteed as to both principal and 
                interest by the United States.
                    (B) Interest and proceeds.--The interest on, and 
                the proceeds from the sale or redemption of, any 
                obligations held in the 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 available, as provided in advance in an 
        appropriations Act, to the Secretary to make grants under this 
        section.

SEC. 5. DEPARTMENT OF DEFENSE SUPPORT FOR SEMICONDUCTOR TECHNOLOGIES 
              AND RELATED TECHNOLOGIES.

    (a) RDT&E and Workforce Training Efforts.--
            (1) In general.--The Secretary of Defense shall, in 
        consultation with the Secretary of Commerce and the Secretary 
        of Labor, establish and implement a priority in the use of 
        amounts available to the Department of Defense for research, 
        development, test, and evaluation, and for workforce training, 
        for programs, projects, and activities in connection 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 Department of Defense as the Secretary considers 
        appropriate.
            (3) Funding.--Of the amount authorized to be appropriated 
        for each fiscal year for the Department of Defense for 
        research, development, test, and evaluation, 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 priority 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 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 develop the plan 
        required by paragraph (1) in consultation with the Secretary of 
        Defense, the Secretary of State, the Secretary of Commerce, and 
        appropriate 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 Secretary of Commerce shall undertake 
a survey, using authorities 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 significant interdependencies between 
the United States industrial base and the industrial base of foreign 
countries with respect to the manufacture and design of semiconductors.
    (b) Response to Survey.--The Secretary shall ensure 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 substantial 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, partnerships, 
        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, partnerships, 
        associations, or any other organized groups in defense treaty 
        or assistance countries where the production of the entity 
        concerned involves critical technologies 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, information on the following with respect to 
the manufacture or design of semiconductors by such entity:
            (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 materials and 
        semi-finished goods and components sourced domestically and 
        abroad by such entity.
            (5) Specifications of the semiconductors manufactured or 
        designed by such entity, descriptions of the end-uses of such 
        semiconductors, and a description 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 People's 
        Republic of China to such entity, and a description of the 
        nature of each request and the type of information provided.
            (10) Information on any joint ventures, technology 
        licensing agreements, and cooperative research or production 
        arrangements of such 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, licensing 
        agreements, or partnerships between such entity and the 
        People's Liberation Army or People's Armed Police, including 
        any business relationships with entities through which such 
        sales, licensing agreements, or partnerships may occur.

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 established in the 
        Treasury of the United States a trust fund, to be known as the 
        ``Multilateral Microelectronics 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).
            (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 Secretary of the 
                Treasury shall invest such portion of the Fund as is 
                not required to meet current withdrawals in interest-
                bearing obligations of the United States or in 
                obligations guaranteed as to both principal and 
                interest by the United States.
                    (B) Interest and proceeds.--The interest on, and 
                the proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to and 
                form a part of the Fund.
            (4) Use of fund.--
                    (A) In general.--Subject to subparagraph (B), 
                amounts in the Fund shall be available, as provided in 
                advance in an appropriations Act, to the Secretary of 
                State--
                            (i) to provide funding through the common 
                        funding mechanism described in subsection 
                        (b)(1) to support the development and adoption 
                        of secure microelectronics and secure 
                        microelectronics supply chains; and
                            (ii) to otherwise carry out this section.
                    (B) Availability contingent on international 
                agreement.--Amounts in the Fund shall be available to 
                the Secretary of State on and after the date on which 
                the Secretary enters into an agreement with the 
                governments of countries that are partners of the 
                United States to participate in the common funding 
                mechanism under paragraph (1) of subsection (b) 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.
    (b) Common Funding Mechanism for Development 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 Security, the Secretary of the Treasury, 
        and the Director 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 
        expenditure of funds pursuant to the common funding mechanism 
        described in paragraph (1). Such commitments shall, at a 
        minimum--
                    (A) establish transparency requirements for any 
                subsidies or other financial benefits (including 
                revenue foregone) provided to microelectronics firms 
                located in or outside such countries;
                    (B) establish consistent policies with respect to 
                countries that--
                            (i) are not participating in the common 
                        funding mechanism; and
                            (ii) do not meet transparency requirements 
                        established under subparagraph (A);
                    (C) promote harmonized treatment of 
                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 common 
                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 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 mechanism 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 expended from the 
        Fund;
            (4) amounts remaining in the Fund;
            (5) the progress of the Secretary of State toward entering 
        into an agreement with the governments of countries that are 
        partners of the United States to participate in the common 
        funding mechanism and the commitments described in subsection 
        (b)(2); and
            (6) any additional authorities needed to enhance the 
        effectiveness of the Fund in achieving the security goals of 
        the United States.

SEC. 8. ADVANCED SEMICONDUCTOR RESEARCH AND DESIGN.

    (a) Appropriate Committees of Congress.--In this section, the term 
``appropriate committees of Congress'' means--
            (1) the Select Committee on Intelligence, the Committee on 
        Commerce, Science, and Transportation, 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 Intelligence, 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 Congress that the 
leadership of the United States in semiconductor technology and 
innovation is critical to the economic growth and national security of 
the United States.
    (c) Subcommittee on Semiconductor Leadership.--
            (1) Establishment required.--The President shall establish 
        in the National Science and Technology Council a subcommittee 
        on matters relating to leadership of the United States in 
        semiconductor technology and innovation.
            (2) Duties.--The duties of the subcommittee established 
        under paragraph (1) are as follows:
                    (A) National strategy on semiconductor research.--
                            (i) Development.--In coordination with the 
                        Secretary of Defense, the Secretary 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, 
                        develop a national strategy on semiconductor 
                        research, including guidance for the funding 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 research and 
                development.--To foster the coordination of 
                semiconductor research and development.
    (d) Advanced Packaging National Manufacturing Institute.--
            (1) Authorization.--The Secretary of Commerce may, in 
        coordination with the private sector, establish in the 
        Department of Commerce an institute on advanced packaging and 
        manufacturing.
            (2) Functions.--The functions of the institute established 
        under paragraph (1) shall be as follows:
                    (A) To establish United States leadership in 
                advanced microelectronic packaging.
                    (B) To promote standards development for such 
                packaging.
                    (C) To foster public-private partnerships relevant 
                to such packaging.
                    (D) To develop research and development programs to 
                advance technology development relevant to such 
                packaging.
                    (E) To establish an investment fund--
                            (i) to support a startup domestic advanced 
                        microelectronic packaging ecosystem;
                            (ii) to accelerate technology transfer; and
                            (iii) to ensure domestic supply chains; and
                    (F) to work with the Secretary of Labor and the 
                private sector to develop workforce training programs 
                and apprenticeships in advanced microelectronic 
                packaging capabilities.
    (e) Authorizations of Appropriations.--
            (1) National semiconductor technology center.--There is 
        authorized to be appropriated to establish a national 
        semiconductor technology center to conduct research and 
        prototyping of advance semiconductors with participation of the 
        private sector, the Secretary of Defense, the Secretary of 
        Energy, the National Science Foundation, and the Director of 
        the National Institute of Standards and Technology, 
        $3,000,000,000 for fiscal year 2021, with such amount to remain 
        available for such purpose through fiscal year 2030.
            (2) Electronics resurgence initiative.--There is authorized 
        to be appropriated to carry out the Electronics Resurgence 
        Initiative of the Defense Advanced Research Projects Agency, 
        $2,000,000,000 for fiscal year 2021, with such amount to remain 
        available for such purpose through fiscal year 2025.
            (3) Semiconductor basic research at national science 
        foundation.--There is authorized to be appropriated to carry 
        out programs at the National Science Foundation on 
        semiconductor basic research, $3,000,000,000 for fiscal year 
        2021, with such amount to remain available for such purpose 
        through fiscal year 2025.
            (4) Semiconductor basic research at department of energy.--
        There is authorized to be appropriated to carry out programs at 
        the Department of Energy on semiconductor basic research, 
        $2,000,000,000 for fiscal year 2021, with such amount to remain 
        available for such purpose through fiscal year 2025.
            (5) Advanced packaging national manufacturing institute.--
        There is authorized to be appropriated to carry out subsection 
        (d), $5,000,000,000 for fiscal year 2021, with such amount to 
        remain available for such purpose through fiscal year 2025--
                    (A) of which, $500,000,000 shall be available to 
                carry out paragraph (2)(D) of such subsection; and
                    (B) of which, $500,000,000 shall be available to 
                carry out paragraph (2)(E) of such subsection.
                                 <all>