Title: No Chips for China Act
Policy area: International Affairs

Summary:
No Chips for China Act
This bill requires U.S. semiconductor manufacturers receiving Department of Commerce incentive funds to agree to not engage in any significant transaction involving the transport, export, or sale of any semiconductor sub-14 nanometer manufacturing processes with Chinese firms. The bill allows for an exception if Commerce grants an export license.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9039 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 9039

 To prohibit the material expansion of semiconductor manufacturing in 
 the People's Republic of China with Federal financial assistance, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2022

   Mr. Budd introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
    Science, Space, and Technology, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To prohibit the material expansion of semiconductor manufacturing in 
 the People's Republic of China with Federal financial assistance, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Chips for China Act''.

SEC. 2. PROHIBITION.

    Section 9902(a)(6)(C) of the William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 
4652(a)(6)(C)) is amended to read as follows:
                    ``(C) Required agreement.--
                            ``(i) In general.--On or before the date on 
                        which the Secretary awards Federal financial 
                        assistance to a covered entity under this 
                        section, the covered entity shall enter into an 
                        agreement with the Secretary specifying that, 
                        during the 10-year period beginning on the date 
                        of the award, the covered entity shall not 
                        engage in any significant transaction, as 
                        defined in the agreement, involving either--
                                    ``(I) the material expansion of 
                                semiconductor manufacturing capacity in 
                                the People's Republic of China or any 
                                other foreign country of concern; or
                                    ``(II) the transfer, export, or 
                                sale of any semiconductor manufacturing 
                                capacity able to produce semiconductors 
                                with sub-14 nanometer processes to 
                                entities located in or affiliated with 
                                the People's Republic of China.
                            ``(ii) Exceptions.--An agreement entered 
                        into pursuant to clause (i) shall not apply to 
                        any covered entity which has obtained an export 
                        license from the Secretary of Commerce.''.
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