No Chips for China Act

Bill: 117-hr-9039
Sponsor: full_name: Rep. Budd, Ted [R-NC-13]
Introduced: 2022-09-29
Policy area: International Affairs
Latest action: action_date: 2022-09-30
text: Referred to the Subcommittee on Consumer Protection and Commerce.

Summaries:
action_date: 2022-09-29
action_desc: Introduced in House
text: <p class="MsoNormal"><b>No Chips for China Act</b></p> <p class="MsoNormal">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.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 9039 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.

1. Short title This Act may be cited as the No Chips for China Act . 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. .