,,ii #aaith ,,congress #b;d ,session ,s4 #dbha ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #ac1 #bjbf,mr4 ,ricketts 7for himself1 ,mr4 ,kim1 ,mr4 ,risch1 and ,mr4 ,schumer7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide for export restrictions on certain semiconductor manufacturing equipment and components therefor1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,multilateral ,alignment of ,technology ,controls on ,hardware 7,,match7 ,act4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 export controls on semiconductor manufacturing equipment and components represent one of the ,united ,states most effective defenses of this foundational technology2 7#b7 advanced computing applications like artificial intelligence are transforming military affairs and the balance of power2 7#c7 the ,united ,states and its allies have an advantage in the foundational technologies that underpin advanced computing applications1 including advanced-node integrated circuits and the equipment and software required to design and produce advanced-node integrated circuits2 7#d7 robust controls on semiconductor manufacturing equipment and components have been a bipartisan priority across multiple administrations1 reflecting a shared recognition that protecting ,america's semiconductor advantage is essential to national security2 7#e7 the adversaries of the ,united ,states are exploiting gaps in the current export control regime2 7#f7 certain entities1 including ,chang,xin ,memory ,technologies1 ,hua ,hong ,semiconductor ,limited1 ,huawei ,technologies ,company1 ,semiconductor ,manufacturing ,international ,corporation1 and ,yangtze ,memory ,technologies ,corporation are engaged in efforts to produce advanced-node integrated circuits that are especially crucial for the ,military-,civil ,fusion efforts of the ,people's ,republic of ,china and warrant comprehensive export controls to prevent those companies from accessing items made with ,united ,states technologies2 7#g7 companies located in adversary countries that produce semiconductor manufacturing equipment are critical to adversaries' efforts to overcome exports controls to develop advanced-node integrated circuit production capabilities1 and such companies should not be permitted to utilize or benefit from ,united ,states or allied technology or components2 7#h7 the ,united ,states ,government should work closely with allies and partners of the ,united ,states to align export controls on semiconductor manufacturing equipment and components to prevent gaps in controls1 reduce the risk of circumvention1 and ensure a level global playing field2 and 7#i7 securing a diplomatic agreement1 including through the use of positive incentives to encourage adoption of these controls1 is the best and most sustainable path to alignment4 #c4 ,report and application of controls 7a7 ,identifying chokepoints ,not later than #fj days after the date of the enactment of this ,act1 and annually thereafter1 the covered agency heads shall-- 7#a7 jointly conduct a review to identify all covered semiconductor manufacturing equipment and all covered facilities2 and 7#b7 shall-- 7,a7 submit to the appropriate congressional committees a list of all such equipment and facilities2 and 7,b7 notify the public in the ,federal ,register when this submission has occurred4 7b7 ,diplomatic engagement 7#a7 ,in general ,the covered agency heads shall prioritize and1 upon the date of the enactment of this ,act1 immediately engage in diplomatic efforts to encourage the governments of allied supplier countries to adopt-- 7,a7 countrywide controls1 or other policies that have the same practical effect as countrywide controls1 on covered semiconductor manufacturing equipment that are subject to the jurisdiction of such allied supplier country2 and 7,b7 license requirements for the export of all applicable items to any covered facility and the servicing of all applicable items at any covered facility1 with a policy of denying such license4 7#b7 ,briefing on diplomatic efforts ,not later than #ij days after the date of the enactment of this ,act1 the covered agency heads shall provide a briefing to members of the appropriate congressional committees that-- 7,a7 describes the status of diplomatic efforts to secure the adoption by allied supplier countries of the controls described in paragraph 7#a72 7,b7 outlines and assesses positive incentives to encourage adoption of these controls2 and 7,c7 identifies-- 7i7 countries that have not adopted the controls described in paragraph 7#a77;,a72 7ii7 countries that have not adopted the controls described in paragraph 7#a77;,b72 and 7iii7 measures that the ,united ,states has taken to implement the controls described in subparagraphs 7,a7 and 7,b7 of paragraph 7#a74 7c7 ,application of controls and exhaustion of diplomatic recourse 7#a7 ,application of controls ,not later than #aej days after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of ,commerce1 in consultation with the ,secretary of ,state1 shall issue regulations that-- 7,a7 apply countrywide controls to covered semiconductor manufacturing equipment produced in the ,united ,states2 and 7,b7 apply comprehensive end-user or end-use restrictions to all covered facilities located in countries of concern4 7#b7 ,exhaustion of diplomatic recourse ,except as provided in paragraph 7#d71 for each allied supplier country1 the covered agency heads shall jointly certify1 not later than #aej days after the date of the enactment of this ,act1 to the appropriate congressional committees that either-- 7,a7 the country has implemented-- 7i7 countrywide controls1 or policies that have the same practical effect1 on all semiconductor manufacturing equipment that is subject to the jurisdiction of the allied supplier country2 and 7ii7 licensing requirements1 with a policy of denying the license1 for the export of all applicable items to any covered facility1 or other policies with the same practical effect2 or 7,b7 7i7 the country has not adopted the controls described in subparagraph 7,a7 or 7,b7 of subsection 7b77#a72 7ii7 the covered agency heads have prioritized and exhausted available diplomatic channels2 7iii7 such channels have failed to secure export controls from the allied supplier country that have the same practical effect as those described in subparagraphs 7,a7 and 7,b7 of subsection 7b77#a72 and 7iv7 continued delay would materially undermine the national security of the ,united ,states4 7#c7 ,extension of controls ,for each allied supplier country for which the covered agency heads submitted a certification described in paragraph 7#b77;,b71 the ,secretary of ,commerce1 in consultation with the ,secretary of ,state1 shall issue regulations that-- 7,a7 establish jurisdiction over and apply countrywide controls1 by directly controlling the equipment1 indirectly restricting the end-use of essential components of such equipment1 or both1 to covered semiconductor manufacturing equipment exported from the allied supplier country2 7,b7 require a license for the servicing of any applicable item that is also subject to the jurisdiction of the allied supplier country in any covered facility located in a country of concern and implement a policy of denying the license for such servicing2 and 7,c7 establish jurisdiction over applicable items from the allied supplier country and apply end-user or end-use controls prohibiting the export of such items to any covered facility4 7#d7 ,national security waiver ,the covered agency heads may jointly grant a one-time waiver to extend the #aej-;day deadline for certification under paragraph 7#b7 by not more than #ij days1 if the covered agency heads1 with concurrence from the ,secretary of ,defense and the ,secretary of ,energy1 jointly-- 7,a7 submit a report to the appropriate congressional committees describing-- 7i7 justification for why the deadline could not be met2 and 7ii7 the interim steps the covered agency heads have taken to prevent stockpiling2 and 7,b7 determine and certify to the appropriate congressional committees that-- 7i7 the extension is in the national security interest of the ,united ,states1 despite the risk that countries of concern may take advantage of the delay to further stockpile covered semiconductor manufacturing equipment2 and 7ii7 the government of the allied supplier country is taking concrete1 verifiable steps1 pursuant to their domestic laws and regulations and as expeditiously as possible1 to adopt and implement controls that have the same practical effect as1 or are more stringent than1 the controls that would otherwise be imposed under paragraph 7#c74 7d7 ,report ,not later than #ahj days after the date of the enactment of this ,act1 and annually thereafter1 the covered agency heads shall provide to the appropriate congressional committees a report that includes-- 7#a7 a list of all covered semiconductor manufacturing equipment2 7#b7 a list of all entities that own or operate a covered facility2 7#c7 the scope of the countrywide controls imposed by the ,united ,states and allied supplier countries on each covered semiconductor manufacturing equipment identified pursuant to paragraph 7#a72 7#d7 a summary of diplomatic engagements and unilateral actions undertaken by the covered agency heads in the #ab-months period prior to the submission of the report to close any gap among allied supplier countries in the countrywide controls imposed by such countries for covered semiconductor manufacturing equipment2 and 7#e7 a certification that the export of any covered semiconductor manufacturing equipment to a country of concern and the export of any applicable items to any covered facility1 or servicing of any such item located in a country of concern1 requires a license issued by the ,united ,states or an allied supplier country1 with a policy of denying such license4 7e7 ,termination and reimposition of controls upon allied action 7#a7 ,termination or modification ,the ,secretary of ,commerce1 in consultation with the ,secretary of ,state1 may terminate or modify any control imposed under subsection 7c77#c7 for items exported from an allied supplier country1 if the country has established controls1 including licensing policies1 that have the same practical effect as those described in subsection 7b77#a74 7#b7 ,reimposition ,if1 after terminating or modifying a control under paragraph 7#a71 the covered agency heads determine that the allied supplier country has materially weakened1 suspended1 or revoked the control that justified the termination or modification under paragraph 7#a71 the ,secretary of ,commerce shall1 in consultation with the ,secretary of ,state and not later than #fj days after making such determination-- 7,a7 notify the appropriate congressional committees of such determination2 and 7,b7 reimpose the control under subsection 7c77#c7 that was terminated or modified under paragraph 7#a74 7f7 ,rule of construction ,nothing in this ,act may be construed as diminishing or superseding the authority of the ,secretary of ,commerce to control the export1 reexport1 or in-country transfer of items under the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhja et seq474 7g7 ,definitions ,in this section3 7#a7 ,advanced-node integrated circuits ,the term advanced-node integrated circuits has the meaning given that term in section #ggb4a of the ,export ,administration ,regulations4 7#b7 ,allied supplier country ,the term allied supplier country means any country that-- 7,a7 is not a country of concern2 and 7,b7 is engaged in the production of covered semiconductor manufacturing equipment4 7#c7 ,applicable item ,the term applicable item means any item that is or can be made subject to the ,export ,administration ,regulations1 including-- 7,a7 a ,united ,states-origin item2 7,b7 a foreign-produced item that is the direct product of1 or produced by plants or major components that are the direct product of1 ,united ,states-origin software or technology subject to the ,export ,administration ,regulations2 7,c7 a foreign-produced item with more than zero percent de minimis ,united ,states-origin content2 and 7,d7 a foreign-produced item that contain ,united ,states-origin or foreign-produced integrated circuits that are presumptively designed or produced1 directly or indirectly1 with technology1 software1 or equipment that is subject to the ,export ,administration ,regulations4 7#d7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,foreign ,relations of the ,senate2 and 7,b7 the ,committee on ,foreign ,affairs of the ,house of ,representatives4 7#e7 ,capabilities comparable to those of the product sold by the global market leader ,the term capabilities comparable to those of the product sold by the global market leader means1 considering cost1 throughput1 reliability1 precision1 and any other relevant factors1 advanced-node integrated circuit makers headquartered outside of countries of concern1 when selecting a tool for use in high-volume manufacturing1 would be indifferent about using1 or would prefer to use1 the tool produced by the country of concern1 rather than a tool sold by the company with the greatest share of the global market for tools used to accomplish the same function4 7#f7 ,country of concern ,the term country of concern has the meaning given the term covered nation in section #dhgb7;f7 of title #aj1 ,united ,states ,code4 7#g7 ,countrywide controls ,the term countrywide controls means licensing requirements1 with a policy of denying any such license1 for the export1 reexport1 in-country transfer1 or servicing of specified items to any destination within a country of concern1 excluding exports where the destination is a fabrication facility that existed as of the date of the enactment of this ,act and remains owned and operated by a company headquartered1 and the ultimate parent company of which is headquartered1 outside of any country of concern4 7#h7 ,covered agency heads ,the term covered agency heads means the ,secretary of ,commerce1 acting through the ,under ,secretary of ,commerce for ,industry and ,security1 and the ,secretary of ,state4 7#i7 ,covered facility ,the term covered facility means-- 7,a7 a facility engaged in the production of advanced-node integrated circuits which is owned or operated by an entity headquartered in1 or whose ultimate parent company is headquartered in1 a country of concern2 or 7,b7 any facility owned or operated by1 or in common ownership or control with-- 7i7 any entity referenced in subparagraphs 7,a7 or 7,b7 of section #eidi7;j77#c7 of the ,james ,m4 ,inhofe ,national ,defense ,authorization ,act for ,fiscal ,year #bjbc 7,public ,law #aag-bfc2 #da ,u4,s4,c4 #dgac note72 7ii7 ,hua ,hong ,semiconductor ,limited2 7iii7 ,huawei ,technologies ,company2 7iv7 any producer1 manufacturer1 or developer of semiconductor manufacturing equipment that is headquartered in1 or the ultimate parent company of which is headquartered in1 a country of concern2 or 7v7 any entity that is a subsidiary1 affiliate1 or successor to1 or has a joint venture1 teaming agreement1 joint development or research agreement1 technology transfer or collaboration agreement1 or other similar type of arrangement with an entity described in any of clauses 7i7 through 7iv74 7#aj7 ,covered semiconductor manufacturing equipment ,the term covered semiconductor manufacturing equipment-- 7,a7 means semiconductor manufacturing equipment or a component therefor that-- 7i7 is an applicable item2 and 7ii7 the covered agency heads determine no country of concern produces in sufficient volumes and with capabilities comparable to those of the product sold by the global market leader1 as of the date of the enactment of this ,act2 and 7,b7 includes1 at a minimum-- 7i7 all semiconductor manufacturing equipment1 materials1 and software that1 as of the date of the enactment of this ,act1 require a license for the export1 reexport1 or in-country transfer to any destination in a country of concern2 7ii7 all deep ultraviolet immersion photolithography machines1 through silicon via deposition and etch tools1 cryogenic etch equipment1 and cobalt deposition equipment2 and 7iii7 all semiconductor manufacturing equipment or components specified in ,export ,control ,classification ,number #c;,b#iic 7as in effect on the date of the enactment of this ,act7 except any item the covered agency heads determine do not meet the requirements of subparagraph 7,a74 7#aa7 ,export2 in-country transfer2 reexport2 export administration regulation ,the terms export1 in-country transfer1 reexport1 and ,export ,administration ,regulations have the meanings given such terms in section #agdb of the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhja74 7#ab7 ,in sufficient volumes ,the term in sufficient volumes means in volumes sufficient to meet #ge percent of current demand from all countries of concern4 7#ac7 ,servicing ,the term servicing means any servicing of equipment or components1 whether in-person or remote1 including installation1 calibration1 repair1 overhauling1 refurbishing1 testing1 diagnosing1 updating software or firmware1 training1 field services1 application support engineering1 customization1 technical assistance1 process adjustments1 troubleshooting1 and transfer of industry best practices for maintenance4