,,ii #aafth ,,congress #b;d ,session ,s4 #dihb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #h1 #bjbj,mr4 ,cornyn 7for himself1 ,mr4 ,warner1 ,mr4 ,schumer1 and ,mr4 ,cotton7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to provide incentives for the production of semiconductors for the ,united ,states1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,creating ,helpful ,incentives for ,producing ,semiconductors for ,america and ,foundries ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,the term appropriate committees of ,congress means-- 7,a7 the ,select ,committee on ,intelligence1 the ,committee on ,energy and ,natural ,resources1 the ,committee on ,commerce1 ,science1 and ,transportation1 the ,committee on ,foreign ,relations1 the ,committee on ,armed ,services1 the ,committee on ,appropriations1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 the ,committee on ,homeland ,security and ,governmental ,affairs1 and the ,committee on ,finance of the ,senate2 and 7,b7 the ,permanent ,select ,committee on ,intelligence1 the ,committee on ,energy and ,commerce1 the ,committee on ,foreign ,affairs1 the ,committee on ,armed ,services1 the ,committee on ,science1 ,space1 and ,technology1 the ,committee on ,appropriations1 the ,committee on ,financial ,services1 the ,committee on ,homeland ,security1 and the ,committee on ,ways and ,means of the ,house of ,representatives4 7#b7 ,the term covered entity means a private entity1 a consortium of private entities1 or a consortium of public and private entities with a demonstrated ability to substantially finance1 construct1 expand1 or modernize a facility relating to fabrication1 assembly1 testing1 advanced packaging1 or research and development of semiconductors4 7#c7 ,the term covered incentive-- 7,a7 means an incentive offered by a governmental entity to a covered entity for the purposes of constructing within the jurisdiction of the governmental entity1 or expanding or modernizing an existing facility within that jurisdiction1 a facility described in paragraph 7#b72 and 7,b7 a workforce-related incentive 7including a grant agreement relating to workforce training or vocational education71 any concession with respect to real property1 funding for research and development with respect to semiconductors1 and any other incentive determined appropriate by the ,secretary1 in consultation with the ,secretary of ,state4 7#d7 ,the term person includes an individual1 partnership1 association1 corporation1 organization1 or any other combination of individuals4 7#e7 ,the term foreign entity-- 7,a7 means-- 7i7 a government of a foreign country and a foreign political party2 7ii7 a natural person who is not a lawful permanent resident of the ,united ,states1 citizen of the ,united ,states1 or any other protected individual 7as such term is defined in section #bgd;,b7a77#c7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;b7a77#c7772 or 7iii7 a partnership1 association1 corporation1 organization1 or other combination of persons organized under the laws of or having its principal place of business in a foreign country2 and 7,b7 includes-- 7i7 any person owned by1 controlled by1 or subject to the jurisdiction or direction of an entity listed in subparagraph 7,a72 7ii7 any person1 wherever located1 who acts as an agent1 representative1 or employee of an entity listed in subparagraph 7,a72 7iii7 any person who acts in any other capacity at the order1 request1 or under the direction or control1 of an entity listed in subparagraph 7,a71 or of a person whose activities are directly or indirectly supervised1 directed1 controlled1 financed1 or subsidized in whole or in majority part by an entity listed in subparagraph 7,a72 7iv7 any person who directly or indirectly through any contract1 arrangement1 understanding1 relationship1 or otherwise1 owns #be percent or more of the equity interests of an entity listed in subparagraph 7,a72 7v7 any person with significant responsibility to control1 manage1 or direct an entity listed in subparagraph 7,a72 7vi7 any person1 wherever located1 who is a citizen or resident of a country controlled by an entity listed in subparagraph 7,a72 or 7vii7 any corporation1 partnership1 association1 or other organization organized under the laws of a country controlled by an entity listed in subparagraph 7,a74 7#f7 ,the term foreign entity of concern means any foreign entity that is-- 7,a7 designated as a foreign terrorist organization by the ,secretary of ,state under section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi72 7,b7 included on the list of specially designated nationals and blocked persons maintained by the ,office of ,foreign ,assets ,control of the ,department of the ,treasury2 7,c7 owned by1 controlled by1 or subject to the jurisdiction or direction of a government of a foreign country that is listed in section #becc;c of title #aj1 ,united ,states ,code2 or 7,d7 alleged by the ,attorney ,general to have been involved in activities for which a conviction was obtained under-- 7i7 chapter #cg of title #ah1 ,united ,states ,code 7commonly known as the ,espionage ,act7 7#ah ,u4,s4,c4 #gib et seq472 7ii7 section #iea or #ajcj of title #ah1 ,united ,states ,code2 7iii7 chapter #ij of title #ah1 ,united ,states ,code 7commonly known as the ,economic ,espionage ,act of #aiif72 7iv7 the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq472 7v7 section #bbd1 #bbe1 #bbf1 #bbg1 or #bcf of the ,atomic ,energy ,act of #aied 7#db ,u4,s4,c4 #bbgd-bbgh2 #bbhd72 7vi7 the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhja et seq472 or 7vii7 the ,international ,economic ,emergency ,powers ,act 7#ej ,u4,s4,c4 #agja et seq472 or 7,e7 determined by the ,secretary1 in consultation with the ,secretary of ,defense and the ,director of ,national ,intelligence1 to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the ,united ,states under this ,act4 7#g7 ,the term governmental entity means a ,state or local government4 7#h7 ,the term ,secretary means the ,secretary of ,commerce4 7#i7 ,the term semiconductor has the meaning given that term by the ,secretary4 #c4 ,semiconductor incentives 7a7 ,financial assistance program 7#a7 ,in general ,the ,secretary shall establish in the ,department of ,commerce a program that1 in accordance with the requirements of this section and subject to the availability of appropriations for such purposes1 provides ,federal financial assistance to covered entities to incentivize investment in facilities and equipment in the ,united ,states for semiconductor fabrication1 assembly1 testing1 advanced packaging1 or research and development4 7#b7 ,procedure 7,a7 ,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 section4 7,b7 ,eligibility ,in order for a covered entity to qualify for financial assistance under this section1 the covered entity shall demonstrate to the ,secretary1 in the application submitted by the covered entity under subparagraph 7,a71 that-- 7i7 the covered entity has a documented interest in constructing1 expanding1 or modernizing a facility described in paragraph 7#a72 and 7ii7 with respect to the project described in clause 7i71 the covered entity has-- 7,i7 been offered a covered incentive2 7,,ii7 made commitments to worker and community investment1 including through-- 7aa7 training and education benefits paid by the covered entity2 and 7bb7 programs to expand employment opportunity for economically disadvantaged individuals2 7,,iii7 secured commitments from regional educational and training entities and institutions of higher education to provide workforce training1 including programming for training and job placement of economically disadvantaged individuals2 and 7,,iv7 an executable plan to sustain the facility described in clause 7i7 without additional ,federal financial assistance under this subsection for facility support4 7,c7 ,considerations for review ,with respect to the review by the ,secretary of an application submitted by a covered entity under subparagraph 7,a7-- 7i7 the ,secretary may not approve the application unless the ,secretary-- 7,i7 confirms that the covered entity has satisfied the eligibility criteria under subparagraph 7,b72 7,,ii7 determines that the project to which the application relates is in the interest of the ,united ,states2 and 7,,iii7 has notified the appropriate committees of ,congress not later than #ae days before making any commitment to provide a grant to any covered entity that exceeds #aj1jjj1jjj2 and 7ii7 the ,secretary may consider whether-- 7,i7 the covered entity has previously received financial assistance made under this subsection2 7,,ii7 the governmental entity offering the applicable covered incentive has benefitted from financial assistance previously provided under this subsection2 7,,iii7 the covered entity has demonstrated that they are responsive to the national security needs or requirements established by the ,intelligence ,community 7or an agency thereof71 the ,national ,nuclear ,security ,administration1 or the ,department of ,defense2 and 7,,iv7 when practicable1 a consortium that is considered a covered entity includes a small business concern1 as defined under section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb71 notwithstanding section #aba4ajc of title #ac1 ,code of ,federal ,regulations2 and 7iii7 the ,secretary may not approve an application if the ,secretary determines that the covered entity is a foreign entity of concern4 7,d7 ,records ,the ,secretary may request records and information from the applicant to review the status of a covered entity4 ,the applicant shall provide the records and information requested by the ,secretary4 7#c7 ,amount 7,a7 ,in general ,the ,secretary shall determine the appropriate amount and funding type for each financial assistance award made to a covered entity under this subsection4 7,b7 ,larger investment ,federal investment in any individual project shall not exceed #c1jjj1jjj1jjj unless the ,secretary1 in consultation with the ,secretary of ,defense and the ,director of ,national ,intelligence1 recommends to the ,president1 and the ,president certifies and reports to the appropriate committees of ,congress1 that a larger investment is necessary to-- 7i7 significantly increase the proportion of reliable domestic supply of semiconductors relevant for national security and economic competitiveness that can be met through domestic production2 and 7ii7 meet the needs of national security4 7#d7 ,use of funds ,a covered entity that receives a financial assistance award under this subsection may only use the financial assistance award amounts to-- 7,a7 finance the construction1 expansion1 or modernization of a facility or equipment to be used for semiconductors described in paragraph 7#a71 as documented in the application submitted by the covered entity under paragraph 7#b77;,b71 as determined necessary by the ,secretary for purposes relating to the national security and economic competitiveness of the ,united ,states2 7,b7 support workforce development for a facility described in subparagraph 7,a72 7,c7 support site development and modernization for a facility described in subparagraph 7,a72 and 7,d7 pay reasonable costs related to the operating expenses for a facility described in subparagraph 7,a71 including specialized workforce1 essential materials1 and complex equipment maintenance1 as determined by the ,secretary4 7#e7 ,clawback 7,a7 ,target dates ,for all major awards to covered entities1 the ,secretary shall-- 7i7 determine target dates by which a project shall commence and complete2 and 7ii7 set these dates by the time of award4 7,b7 ,progressive recovery for delays ,if the project does not commence and complete by the set target dates in 7,a71 the ,secretary shall progressively recover up to the full amount of an award provided to a covered entity under this subsection4 7,c7 ,technology clawback ,the ,secretary shall recover the full amount of an award provided to a covered entity under this subsection if1 during the applicable term with respect to the award1 the covered entity knowingly engages in any joint research or technology licensing effort-- 7i7 with a foreign entity of concern2 and 7ii7 that relates to a technology or product that raises national security concerns1 as determined by the ,secretary and communicated to the covered entity before engaging in such joint research or technology licensing4 7,d7 ,waiver ,in the case of delayed projects1 the ,secretary may waive elements of the clawback provisions incorporated in each major award after-- 7i7 making a formal determination that circumstances beyond the ability of the covered entity to foresee or control are responsible for delays2 and 7ii7 submitting congressional notification4 7,e7 ,congressional notification ,the ,secretary shall notify appropriate committees of ,congress-- 7i7 of the clawback provisions attending each such major award2 and 7ii7 of any waivers provided1 not later than #ae days after the date on which such a waiver was provided4 7b7 ,coordination required ,in carrying out the program established under subsection 7a71 the ,secretary shall coordinate with the ,secretary of ,state1 the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 the ,secretary of ,energy1 and the ,director of ,national ,intelligence4 7c7 ,,gao reviews ,the ,comptroller ,general of the ,united ,states shall-- 7#a7 not later than #b years after the date of disbursement of the first financial award under subsection 7a71 and biennially thereafter for #aj years1 conduct a review of the program established under subsection 7a71 which shall include1 at a minimum-- 7,a7 a determination of the number of instances in which financial assistance awards were provided under that subsection during the period covered by the review2 7,b7 an evaluation of how-- 7i7 the program is being carried out1 including how recipients of financial assistance awards are being selected under the program2 and 7ii7 other ,federal programs are leveraged for manufacturing1 research1 and training to complement the financial assistance awards awarded under the program2 and 7,c7 a description of the outcomes of projects supported by awards made under the program1 including a description of-- 7i7 facilities described in subsection 7a77#a7 that were constructed1 expanded1 or modernized as a result of awards made under the program2 7ii7 research and development carried out with awards made under the program2 7iii7 workforce training programs carried out with awards made under the program1 including efforts to hire individuals from disadvantaged populations2 and 7iv7 the impact of projects on the ,united ,states share of global microelectronics production2 and 7#b7 submit to the appropriate committees of ,congress the results of each review conducted under paragraph 7#a74 #d4 ,department of ,defense 7a7 ,department of ,defense efforts 7#a7 ,in general ,subject to the availability of appropriations for such purposes1 the ,secretary of ,defense1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,energy1 the ,secretary of ,homeland ,security1 and the ,director of ,national ,intelligence1 shall establish a public-private partnership through which the ,secretary shall work to incentivize the formation of one or more consortia of companies 7or other such partnerships of private-sector entities1 as appropriate7 to ensure the development and production of measurably secure microelectronics1 including integrated circuits1 logic devices1 memory1 and the packaging and testing practices that support these microelectronic components by the ,department of ,defense1 the intelligence community1 critical infrastructure sectors1 and other national security applications4 ,such incentives may include the use of grants under section #c1 and providing incentives for the creation1 expansion1 or modernization of one or more commercially competitive and sustainable microelectronics manufacturing or advanced research and development facilities in the ,united ,states4 7#b7 ,risk mitigation requirements ,a participant in a consortium formed with incentives under paragraph 7#a7-- 7,a7 shall have the potential to enable design1 perform fabrication1 assembly1 package1 or test functions for microelectronics deemed critical to national security as defined by the ,national ,security ,advisor and the ,secretary of ,defense2 7,b7 may be a fabless company migrating its designs to the facility envisioned in paragraph 7#a7 or migrating to an existing facility onshore2 7,c7 may be companies1 including fabless companies and companies that procure large quantities of microelectronics1 willing to co-invest to achieve the objectives set forth in paragraph 7#a72 7,d7 shall include management processes to identify and mitigate supply chain security risks2 and 7,e7 shall be capable of providing microelectronic components that are consistent with applicable measurably secure supply chain and operational security standards established under section #bbd7;b7 of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjbj 7,public ,law #aaf-ib74 7#c7 ,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 7#a74 ,in selecting such participants1 the ,secretary and the ,director may jointly consider whether the companies-- 7,a7 have participated in previous programs and projects of the ,department of ,defense1 ,department of ,energy1 or the intelligence community1 including-- 7i7 the ,trusted ,integrated ,circuit program of the ,intelligence ,advanced ,research ,projects ,activity2 7ii7 trusted and assured microelectronics projects1 as administered by the ,department of ,defense2 7iii7 the ,electronics ,resurgence ,initiative program of the ,defense ,advanced ,research ,projects ,agency2 or 7iv7 relevant semiconductor research programs of the ,advanced ,research ,projects ,agency-,energy2 7,b7 have demonstrated an ongoing commitment to performing contracts for the ,department of ,defense and the intelligence community2 7,c7 are approved by the ,defense ,counterintelligence and ,security ,agency or the ,office of the ,director of ,national ,intelligence as presenting an acceptable security risk1 taking into account supply chain assurance vulnerabilities1 counterintelligence risks1 and any risks presented by companies whose beneficial owners are located outside the ,united ,states2 and 7,d7 are evaluated periodically for foreign ownership1 control1 or influence by a foreign entity of concern4 7#d7 ,nontraditional defense contractors and commercial entities ,arrangements entered into to carry out paragraph 7#a7 shall be in such form as the ,secretary of ,defense determines appropriate to encourage industry participation of nontraditional defense contractors or commercial entities and may include a contract1 a grant1 a cooperative agreement1 a commercial agreement1 the use of other transaction authority under section #bcga of title #aj1 ,united ,states ,code1 or another such arrangement4 7#e7 ,implementation ,subject to the availability of appropriations for such purposes1 the ,secretary of ,defense-- 7,a7 shall carry out paragraph 7#a7 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 ,sustainment2 and 7,b7 may carry out paragraph 7#a7 in collaboration with any such other component of the ,department of ,defense as the ,secretary of ,defense considers appropriate4 7#f7 ,other initiatives 7,a7 ,required initiatives ,subject to the availability of appropriations for such purposes1 the ,secretary of ,defense1 in consultation with the ,secretary of ,energy and the ,administrator of the ,national ,nuclear ,security ,administration1 as appropriate1 may dedicate initiatives within the ,department of ,defense to carry out activities to advance radio frequency1 mixed signal1 radiation tolerant1 and radiation hardened microelectronics that support national security and dual-use applications4 7,b7 ,support plan required ,the ,secretary of ,defense1 in consultation with the heads of appropriate departments and agencies of the ,federal ,government1 shall develop a plan1 including assessment of resource requirements and designation of responsible officials1 for the maintenance of capabilities to produce trusted and assured microelectronics to support current and legacy defense systems1 other government systems essential for national security1 and critical infrastructure of the ,united ,states1 especially for items with otherwise limited commercial demand4 7,c7 ,assessment of public private partnerships and activities ,in conjunction with the activities carried out under this section1 the ,secretary of ,defense shall enter into an agreement with the ,national ,academies of ,sciences1 ,engineering1 and ,medicine to undertake a study to make recommendations and provide policy options for optimal public-private partnerships and partnership activities1 including an analysis of establishing a semiconductor manufacturing corporation to leverage private sector technical1 managerial1 and investment expertise1 and private capital1 as well as an assessment of and response to the industrial policies of other nations to support industries in similar critical technology sectors1 and deliver such study to the congressional defense committees not later than ,october #a1 #bjbb4 7#g7 ,reports 7,a7 ,report by ,secretary of ,defense ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,defense shall submit to ,congress a report on the plans of the ,secretary to carry out paragraphs 7#a7 and 7#f74 7,b7 ,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 by subparagraph 7,a7 and not less frequently than once every two years thereafter for a period of #aj years1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on the activities carried out under this subsection4 7b7 ,national network for microelectronics research and development 7#a7 ,in general ,subject to the availability of appropriations for such purposes1 the ,secretary of ,defense may establish a national network for microelectronics research and development-- 7,a7 to enable the laboratory to fabrication transition of microelectronics innovations in the ,united ,states2 and 7,b7 to expand the global leadership in microelectronics of the ,united ,states4 7#b7 ,activities ,the national network for microelectronics research and development shall-- 7,a7 enable cost-effective exploration of new materials1 devices1 and architectures1 and prototyping in domestic facilities to safeguard domestic intellectual property2 7,b7 accelerate the transition of new technologies to domestic microelectronics manufacturers2 and 7,c7 conduct other relevant activities deemed necessary by the ,secretary of ,defense for accomplishing the purposes of the national network for microelectronics research and development4 #e4 ,department of ,commerce study on status of microelectronics technologies in the ,united ,states industrial base 7a7 ,in general ,beginning not later than #ahj days after the date of the enactment of this ,act1 the ,secretary1 in consultation with the heads of other ,federal departments and agencies1 as appropriate1 including the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 and the ,secretary of ,energy1 shall undertake a review1 which shall include a survey1 using authorities in section #gje of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deee71 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 bases of foreign countries with respect to the manufacture1 design1 and end use of microelectronics4 7b7 ,response to survey ,to the extent authorized by section #gje of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deee7 and section #gjb of title #ae1 ,code of ,federal ,regulations1 the ,secretary shall ensure all relevant potential respondents reply to the survey1 including the following3 7#a7 ,corporations1 partnerships1 associations1 or any other organized groups domiciled and with substantial operations in the ,united ,states4 7#b7 ,corporations1 partnerships1 associations1 or any other organized groups with a physical presence of any kind in the ,united ,states4 7#c7 ,foreign domiciled corporations1 partnerships1 associations1 or any other organized groups with a physical presence of any kind in the ,united ,states4 7c7 ,information requested ,to the extent authorized by section #gje of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deee7 and section #gjb of title #ae1 ,code of ,federal ,regulations1 the information sought from a responding entity specified in subsection 7b7 shall include1 at minimum1 information on the following with respect to the manufacture1 design1 or end use of microelectronics by such entity3 7#a7 ,an identification of the geographic scope of operations4 7#b7 ,information on relevant cost structures4 7#c7 ,an identification of types of microelectronics development1 manufacture1 assembly1 test1 and packaging equipment in operation at such an entity4 7#d7 ,an identification of all relevant intellectual property1 raw materials1 and semi-finished goods and components sourced domestically and abroad by such an entity4 7#e7 ,specifications of the microelectronics manufactured or designed by such an entity1 descriptions of the end uses of such microelectronics1 and a description of any technical support provided to end users of such microelectronics by such an entity4 7#f7 ,information on domestic and export market sales by such an entity4 7#g7 ,information on the financial performance1 including income and expenditures1 of such an entity4 7#h7 ,a list of all foreign and domestic subsidies1 and any other financial incentives1 received by such an entity in each market in which such entity operates4 7#i7 ,a list of regulatory or other informational requests about the respondents' operations1 sales1 or other proprietary information by the ,people's ,republic of ,china entities under its direction or officials of the ,chinese ,communist ,party1 a description of the nature of each request1 and the type of information provided4 7#aj7 ,information on any joint ventures1 technology licensing agreements1 and cooperative research or production arrangements of such an entity4 7#aa7 ,a description of efforts by such an entity to evaluate and control supply chain risks4 7#ab7 ,a list and description of any sales1 licensing agreements1 or partnerships between such an entity and the ,people's ,liberation ,army or ,people's ,armed ,police1 including any business relationships with entities through which such sales1 licensing agreements1 or partnerships may occur4 7d7 ,report 7#a7 ,in general ,the ,secretary shall1 in consultation with the heads of other appropriate ,federal departments and agencies1 as appropriate1 including the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 and the ,secretary of ,energy1 submit to ,congress a report on the results of the review required by subsection 7a74 ,the report shall include the following3 7,a7 ,an assessment of the results of the review4 7,b7 ,a list of critical technology areas impacted by potential disruptions in production of microelectronics1 and a detailed description and assessment of the impact of such potential disruptions on such areas4 7,c7 ,a description and assessment of gaps and vulnerabilities in the microelectronics supply chain and the national industrial supply base4 7#b7 ,form ,the report required by paragraph 7#a7 may be submitted in classified form4 #f4 ,funding for development and adoption of measurably secure semiconductors and measurably secure semiconductors supply chains 7a7 ,multilateral semiconductors security fund 7#a7 ,establishment of fund ,the ,secretary of the ,treasury is authorized to establish a trust fund1 to be known as the ,multilateral ,semiconductors ,security ,fund 7in this section referred to as the ,fund71 consisting of any appropriated funds credited to the ,fund for such purpose4 7#b7 ,reporting requirement ,if the ,fund authorized under subsection 7a77#a7 is not established1 #ahj days after the date of the enactment of this ,act and annually thereafter until such ,fund is established1 the ,secretary of the ,treasury1 in coordination with the ,secretary of ,state1 shall provide1 in writing1 to the appropriate committees of ,congress a rationale for not establishing the ,fund4 7#c7 ,investment of amounts 7,a7 ,investment of amounts ,if the ,fund authorized under subsection 7a77#a7 is established1 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 ,states4 7,b7 ,interest and proceeds ,the interest on1 and the proceeds from the sale or redemption of1 any obligations held in the ,fund shall be credited to and form a part of the ,fund4 7#d7 ,use of fund 7,a7 ,in general ,subject to subparagraph 7,b71 amounts in the ,fund shall be available1 as provided in advance in an appropriations ,act1 to the ,secretary of ,state-- 7i7 to provide funding through the common funding mechanism described in subsection 7b77#a7 to support the development and adoption of measurably secure semiconductors and measurably secure semiconductors supply chains2 and 7ii7 to otherwise carry out this section4 7,b7 ,availability contingent on international arrangement or agreement 7i7 ,in general ,amounts in the ,fund shall be available to the ,secretary of ,state1 subject to appropriation1 on and after the date on which the ,secretary of ,state enters into an arrangement or agreement with the governments of countries that are partners of the ,united ,states to participate in the common funding mechanism under paragraph 7#a7 of subsection 7b74 7ii7 ,consultation ,before entering into an arrangement or agreement as described clause 7i71 the ,secretary of ,state1 in consultation with the ,secretary of ,commerce1 shall ensure any partner government maintains export control licensing policies on semiconductor technology substantively equivalent to the ,united ,states with respect to restrictions on such exports to the ,people's ,republic of ,china4 7b7 ,common funding mechanism for development and adoption of measurably secure semiconductors and measurably secure semiconductors supply chains 7#a7 ,in general ,the ,secretary of ,state1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 the ,secretary of the ,treasury1 the ,secretary of ,energy1 and the ,director of ,national ,intelligence1 is authorized to establish a common funding mechanism1 in coordination with foreign partners1 that uses amounts from the ,fund to support the development and adoption of secure semiconductors and secure semiconductors supply chains1 including for use in research and development collaborations among partner countries participating in the common funding mechanism4 ,in establishing and sustaining a common funding mechanism1 the ,secretary of ,state should leverage ,united ,states funding in order to secure contributions and commitments from trusted foreign partners1 including cost sharing and other cooperative measures leading to the development and adoption of secure semiconductors and secure microelectronic supply chains4 7#b7 ,commitments ,in creating and sustaining a common funding mechanism described in paragraph 7#a71 the ,secretary of ,state should promote efforts among foreign partners to-- 7,a7 establish transparency requirements for any subsidies or other financial benefits 7including revenue foregone7 provided to semiconductors firms located in or outside such countries2 7,b7 establish consistent policies with respect to countries that-- 7i7 are not participating in the common funding mechanism2 and 7ii7 do not meet transparency requirements established under subparagraph 7,a72 7,c7 promote harmonized treatment of semiconductors and verification processes for items being exported to a country considered a national security risk by a country participating in the common funding mechanism2 7,d7 establish consistent policies and common external policies to address nonmarket economies as the behavior of such countries pertains to semiconductors2 7,e7 align policies on supply chain integrity and semiconductors security1 including with respect to protection and enforcement of intellectual property rights2 and 7,f7 promote harmonized foreign direct investment screening measures and export control policies with respect to semiconductors to align with national1 multilateral1 and plurilateral security priorities4 7c7 ,annual report to ,congress ,not later than one year after the date of the enactment of this ,act1 and annually thereafter for each fiscal year during which amounts in the ,fund are available under subsection 7a77#d71 the ,secretary of ,state shall submit to the appropriate committees of ,congress a report on the status of the implementation of this section that includes a description of-- 7#a7 any commitments made by the governments of countries that have entered into an arrangement or agreement with the ,united ,states to provide funding for the common funding mechanism described in subsection 7b77#a7 and the specific amount so committed and other cooperative measures being taken by such countries as part of the common funding mechanism2 7#b7 the criteria established for expenditure of funds through the common funding mechanism2 7#c7 how1 and to whom1 amounts have been expended from the ,fund and a description of progress made utilizing the ,fund to support the objectives described in subsection 7b77#a72 7#d7 amounts remaining in the ,fund2 7#e7 the progress of the ,secretary of ,state toward entering into an arrangement or 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 7b77#b72 and 7#f7 any additional authorities needed to enhance the effectiveness of the ,fund in achieving the security goals of the ,united ,states4 7d7 ,notifications ,to be provided by the fund 7#a7 ,in general ,not later than #ae days prior to the ,fund making a financial commitment associated with the provision of expenditures under subsection 7a77#d77;,a7 in an amount in excess of #a1jjj1jjj1 the ,secretary of ,state shall submit to the appropriate committees of ,congress a report in writing that contains the information required by paragraph 7#b74 7#b7 ,information required ,the information required by this subsection includes-- 7,a7 the amount of each such expenditure2 7,b7 an identification of the recipient or beneficiary2 and 7,c7 a description of the project or activity and the purpose to be achieved by an expenditure of the ,fund4 7#c7 ,arrangements or agreements ,the ,secretary of ,state shall notify the appropriate committees of ,congress not later than #cj days after entering into a new bilateral or multilateral arrangement or agreement described in subsection 7a77#d77;,b74 #g4 ,advanced microelectronics research and development 7a7 ,subcommittee on microelectronics leadership 7#a7 ,establishment required ,the ,president shall establish in the ,national ,science and ,technology ,council a subcommittee on matters relating to leadership and competitiveness of the ,united ,states in microelectronics technology and innovation 7in this section referred to as the ,subcommittee74 7#b7 ,membership ,the ,subcommittee shall be composed of the following members3 7,a7 ,the ,secretary of ,defense4 7,b7 ,the ,secretary of ,energy4 7,c7 ,the ,director of the ,national ,science ,foundation4 7,d7 ,the ,secretary of ,commerce4 7,e7 ,the ,secretary of ,state4 7,f7 ,the ,secretary of ,homeland ,security4 7,g7 ,the ,united ,states ,trade ,representative4 7,h7 ,the ,director of ,national ,intelligence4 7,i7 ,the heads of such other departments and agencies of the ,federal ,government as the ,president determines appropriate4 7#c7 ,duties ,the duties of the ,subcommittee are as follows3 7,a7 ,national strategy on microelectronics research 7i7 ,in general ,in consultation with the advisory committee established in 7b71 and other appropriate stakeholders in the microelectronics industry and academia1 the ,subcommittee shall develop a national strategy on microelectronics research1 development1 manufacturing1 and supply chain security to-- 7,i7 accelerate the domestic development and production of microelectronics and strengthen the domestic microelectronics workforce2 and 7,,ii7 ensure that the ,united ,states is a global leader in the field of microelectronics research and development4 7ii7 ,elements ,the strategy developed under this subparagraph shall address-- 7,i7 activities that may be carried out to strengthen engagement and outreach between the ,department of ,defense and industry1 academia1 international partners of the ,united ,states1 and other departments and agencies of the ,federal ,government on issues relating to microelectronics2 7,,ii7 priorities for research and development to accelerate the advancement and adoption of innovative microelectronics and new uses of microelectronics and components2 7,,iii7 the role of diplomacy and trade in maintaining the position of the ,united ,states as a global leader in the field of microelectronics2 7,,iv7 the potential role of a ,federal laboratory1 center1 or incubator exclusively focused on the research and development of microelectronics1 as described in section #bca7;b77#ae7 of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjag 7as added by section #bgf of this ,act7 in carrying out the strategy and plan required under this subparagraph2 and 7,v7 such other activities as the ,subcommittee determines may be appropriate to overcome future challenges to the innovation1 competitiveness1 and supply chain integrity of the ,united ,states in the field of microelectronics4 7,b7 ,fostering coordination of research and development ,the ,subcommittee shall coordinate microelectronics related research1 development1 manufacturing1 and supply chain security activities and budgets of ,federal agencies and ensure such activities are consistent with the strategy required under subparagraph 7,a74 7,c7 ,reporting and updates 7i7 ,progress briefing ,not later than one year after the date of the enactment of this ,act1 the ,president shall provide to the appropriate committees of ,congress a briefing on the progress of the ,subcommittee in developing the strategy required under subparagraph 7,a74 7ii7 ,strategy update ,not less frequently than once every #e years1 the ,subcommittee shall update the strategy developed under subparagraph 7,a7 and submit the revised strategy to the appropriate committees of ,congress4 7#d7 ,sunset ,the ,subcommittee shall terminate on the date that is #aj years after the date of the enactment of this ,act4 7b7 ,industrial advisory committee 7#a7 ,establishment ,the ,secretary of ,commerce1 in consultation with the ,secretary of ,defense1 the ,secretary of ,energy1 and the ,secretary of ,homeland ,security1 shall establish an advisory committee to be composed of not fewer than #ab members1 including representatives of industry1 ,federal laboratories1 and academic institutions1 who are qualified to provide advice to the ,united ,states ,government on matters relating to microelectronics research1 development1 manufacturing1 and policy4 7#b7 ,duties ,the advisory committee shall assess and provide guidance to the ,united ,states ,government on-- 7,a7 science and technology needs of the ,nation's domestic microelectronics industry2 7,b7 the extent to which the strategy developed under subsection 7a77#c7 is helping maintain ,united ,states leadership in microelectronics manufacturing2 7,c7 assessment of the research and development programs and activities authorized under this section2 and 7,d7 opportunities for new public-private partnerships to advance microelectronics research1 development1 and domestic manufacturing4 7#c7 ,,faca ,exemption ,section #ad of the ,federal ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app47 shall not apply to the advisory committee established under this subsection4 7c7 ,national semiconductor technology center 7#a7 ,establishment ,subject to the availability of appropriations for such purpose1 the ,secretary of ,commerce1 in collaboration with the ,secretary of ,defense1 shall establish a national semiconductor technology center to conduct research and prototyping of advanced semiconductor technology to strengthen the economic competitiveness and security of the domestic supply chain4 ,such center shall be operated as a public private-sector consortium with participation from the private sector1 the ,department of ,energy1 and the ,national ,science ,foundation4 7#b7 ,functions ,the functions of the center established under paragraph 7#a7 shall be as follows3 7,a7 ,to conduct advanced semiconductor manufacturing1 design and packaging research1 and prototyping that strengthens the entire domestic ecosystem and is aligned with the strategy required under subsection 7a77#c77;,a7 with emphasis on the following3 7i7 ,semiconductor advanced test1 assembly1 and packaging capability in the domestic ecosystem4 7ii7 ,materials characterization1 instrumentation and testing for next generation microelectronics4 7iii7 ,virtualization and automation of maintenance of semiconductor machinery4 7iv7 ,metrology for security and supply chain verification4 7,b7 ,to establish an investment fund1 in partnership with the private sector1 to support startups and collaborations between startups1 academia1 established companies1 and new ventures1 with the goal of commercializing innovations that contribute to the domestic semiconductor ecosystem1 including-- 7i7 advanced metrology and characterization for manufacturing of microchips using #c nanometer transistor processes or more advanced processes2 and 7ii7 metrology for security and supply chain verification4 7,c7 ,to work with the ,secretary of ,labor1 the ,director of the ,national ,science ,foundation1 the ,secretary of ,energy1 the private sector1 institutions of higher education1 and workforce training entities to incentivize and expand participation in graduate and undergraduate programs1 and develop workforce training programs and apprenticeships1 in advanced microelectronic design1 research1 fabrication1 and packaging capabilities4 7d7 ,national advanced packaging manufacturing program ,subject to the availability of appropriations for such purpose1 the ,secretary of ,commerce shall establish a ,national ,advanced ,packaging ,manufacturing ,program led by the ,director of the ,national ,institute of ,standards and ,technology1 in coordination with the national semiconductor technology center established under subsection 7c71 to strengthen semiconductor advanced test1 assembly1 and packaging capability in the domestic ecosystem1 and which shall coordinate with the ,manufacturing ,,usa institute established under subsection 7f71 if applicable4 7e7 ,microelectronics research at the ,national ,institute of ,standards and ,technology ,subject to the availability of appropriations for such purpose1 the ,director of the ,national ,institute of ,standards and ,technology shall carry out a microelectronics research program to enable advances and breakthroughs in measurement science1 standards1 material characterization1 instrumentation1 testing1 and manufacturing capabilities that will accelerate the underlying research and development for metrology of next generation microelectronics and ensure the competitiveness and leadership of the ,united ,states within this sector4 7f7 ,creation of a manufacturing ,,usa institute ,subject to the availability of appropriations for such purpose1 the ,director of the ,national ,institute of ,standards and ,technology may establish a ,manufacturing ,,usa institute described in section #cd7;d7 of the ,national ,institute of ,standards and ,technology ,act 7#ae ,u4,s4,c4 #bghs7d77 that is focused on semiconductor manufacturing4 ,such institute may emphasize the following3 7#a7 ,research to support the virtualization and automation of maintenance of semiconductor machinery4 7#b7 ,development of new advanced test1 assembly1 and packaging capabilities4 7#c7 ,developing and deploying educational and skills training curricula needed to support the industry sector and ensure the ,united ,states can build and maintain a trusted and predictable talent pipeline4 7g7 ,domestic production requirements ,the head of any executive agency receiving funding under this section shall develop policies to require domestic production1 to the extent possible1 for any intellectual property resulting from microelectronics research and development conducted as a result of such funding and domestic control requirements to protect any such intellectual property from foreign adversaries4 #h4 ,prohibition relating to foreign entities of concern ,none of the funds authorized to be appropriated to carry out this ,act may be provided to a foreign entity of concern4 #i4 ,defense ,production ,act of #aiej efforts 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,president shall submit to ,congress a report on a plan of action for any use of authorities available in title ,,iii of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deca et seq47 to establish or enhance a domestic production capability for microelectronics technologies and related technologies1 subject to-- 7#a7 the availability of appropriations for that purpose2 and 7#b7 a determination made under the plan pursuant to such title ,,iii that such technologies are essential to the national defense and that domestic industrial capabilities are insufficient to meet these needs4 7b7 ,coordination ,the ,president shall develop the plan of action required by subsection 7a7 in consultation with any relevant head of a ,federal agency1 an advisory committee established under section #gjh7;d7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deeh7;d771 and appropriate stakeholders in the private sector4