,,ii #aai? ,,congress #b;d ,session ,s4 #dbha ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #ac1 #bjbf,mr4 ,ricketts 7= himself1 ,mr4 ,kim1 ,mr4 ,ris*1 & ,mr4 ,s*um]7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to provide = export re/rictions on c]ta9 semiconductor manufactur+ equipm5t & compon5ts !re=1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,multilat]al ,alignm5t ( ,te*nology ,controls on ,h>dw>e 7,,mat*7 ,act4 #b4 ,s5se ( ,congress ,x is ! s5se ( ,congress t-- 7#a7 export controls on semiconductor manufactur+ equipm5t & compon5ts repres5t "o ( ! ,unit$ ,/ates mo/ effective def5ses ( ?is f\ndational te*nology2 7#b7 advanc$ comput+ applications l artificial intellig5ce are trans=m+ milit>y affairs & ! balance ( p[]2 7#c7 ! ,unit$ ,/ates & its allies h an advantage 9 ! f\ndational te*nologies t und]p9 advanc$ comput+ applications1 includ+ advanc$-node integrat$ circuits & ! equipm5t & s(tw>e requir$ to design & produce advanc$-node integrat$ circuits2 7#d7 robu/ controls on semiconductor manufactur+ equipm5t & compon5ts h be5 a bip>tisan priority across multiple adm9i/rations1 reflect+ a %>$ recognition t protect+ ,am]ica's semiconductor advantage is ess5tial to national security2 7#e7 ! adv]s>ies ( ! ,unit$ ,/ates are exploit+ gaps 9 ! curr5t export control regime2 7#f7 c]ta9 entities1 includ+ ,chang,xin ,memory ,te*nologies1 ,hua ,hong ,semiconductor ,limit$1 ,huawei ,te*nologies ,company1 ,semiconductor ,manufactur+ ,int]national ,corporation1 & ,yangtze ,memory ,te*nologies ,corporation are engag$ 9 ef=ts to produce advanc$-node integrat$ circuits t are especially crucial = ! ,milit>y-,civil ,fusion ef=ts ( ! ,p's ,republic ( ,*9a & w>rant compreh5sive export controls to prev5t ^? companies f access+ items made ) ,unit$ ,/ates te*nologies2 7#g7 companies locat$ 9 adv]s>y c\ntries t produce semiconductor manufactur+ equipm5t are critical to adv]s>ies' ef=ts to ov]come exports controls to develop advanc$-node integrat$ circuit production capabilities1 & su* companies %\ld n be p]mitt$ to utilize or b5efit f ,unit$ ,/ates or alli$ te*nology or compon5ts2 7#h7 ! ,unit$ ,/ates ,gov]nm5t %\ld "w closely ) allies & p>tn]s ( ! ,unit$ ,/ates to align export controls on semiconductor manufactur+ equipm5t & compon5ts to prev5t gaps 9 controls1 r$uce ! risk ( circumv5tion1 & ensure a level global play+ field2 & 7#i7 secur+ a diplomatic agreem5t1 includ+ ?r\gh ! use ( positive inc5tives to enc\rage adoption ( ^! controls1 is ! be/ & mo/ su/a9able pa? to alignm5t4 #c4 ,report & application ( controls 7a7 ,id5tify+ *okepo9ts ,n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is ,act1 & annually !reaft]1 ! cov]$ ag5cy heads %all-- 7#a7 jo9tly conduct a review to id5tify all cov]$ semiconductor manufactur+ equipm5t & all cov]$ facilities2 & 7#b7 %all-- 7,a7 submit to ! appropriate congressional committees a li/ ( all su* equipm5t & facilities2 & 7,b7 notify ! public 9 ! ,f$]al ,regi/] :5 ?is submission has occurr$4 7b7 ,diplomatic engagem5t 7#a7 ,9 g5]al ,! cov]$ ag5cy heads %all prioritize &1 ^u ! date ( ! enactm5t ( ?is ,act1 imm$iately engage 9 diplomatic ef=ts to enc\rage ! gov]nm5ts ( alli$ suppli] c\ntries to adopt-- 7,a7 c\ntrywide controls1 or o!r policies t h ! same practical effect z c\ntrywide controls1 on cov]$ semiconductor manufactur+ equipm5t t are subject to ! jurisdiction ( su* alli$ suppli] c\ntry2 & 7,b7 lic5se requirem5ts = ! export ( all applicable items to any cov]$ facility & ! s]vic+ ( all applicable items at any cov]$ facility1 ) a policy ( d5y+ su* lic5se4 7#b7 ,brief+ on diplomatic ef=ts ,n lat] ?an #ij days aft] ! date ( ! enactm5t ( ?is ,act1 ! cov]$ ag5cy heads %all provide a brief+ to memb]s ( ! appropriate congressional committees t-- 7,a7 describes ! /atus ( diplomatic ef=ts to secure ! adoption by alli$ suppli] c\ntries ( ! controls describ$ 9 p>agraph 7#a72 7,b7 outl9es & assesses positive inc5tives to enc\rage adoption ( ^! controls2 & 7,c7 id5tifies-- 7i7 c\ntries t h n adopt$ ! controls describ$ 9 p>agraph 7#a77;,a72 7ii7 c\ntries t h n adopt$ ! controls describ$ 9 p>agraph 7#a77;,b72 & 7iii7 measures t ! ,unit$ ,/ates has tak5 to implem5t ! controls describ$ 9 subp>agraphs 7,a7 & 7,b7 ( p>agraph 7#a74 7c7 ,application ( controls & exhau/ion ( diplomatic rec\rse 7#a7 ,application ( controls ,n lat] ?an #aej days aft] ! date ( ! enactm5t ( ?is ,act1 & annually !reaft]1 ! ,secret>y ( ,comm]ce1 9 consultation ) ! ,secret>y ( ,/ate1 %all issue regulations t-- 7,a7 apply c\ntrywide controls to cov]$ semiconductor manufactur+ equipm5t produc$ 9 ! ,unit$ ,/ates2 & 7,b7 apply compreh5sive end-us] or end-use re/rictions to all cov]$ facilities locat$ 9 c\ntries ( conc]n4 7#b7 ,exhau/ion ( diplomatic rec\rse ,except z provid$ 9 p>agraph 7#d71 = ea* alli$ suppli] c\ntry1 ! cov]$ ag5cy heads %all jo9tly c]tify1 n lat] ?an #aej days aft] ! date ( ! enactm5t ( ?is ,act1 to ! appropriate congressional committees t ei!r-- 7,a7 ! c\ntry has implem5t$-- 7i7 c\ntrywide controls1 or policies t h ! same practical effect1 on all semiconductor manufactur+ equipm5t t is subject to ! jurisdiction ( ! alli$ suppli] c\ntry2 & 7ii7 lic5s+ requirem5ts1 ) a policy ( d5y+ ! lic5se1 = ! export ( all applicable items to any cov]$ facility1 or o!r policies ) ! same practical effect2 or 7,b7 7i7 ! c\ntry has n adopt$ ! controls describ$ 9 subp>agraph 7,a7 or 7,b7 ( subsection 7b77#a72 7ii7 ! cov]$ ag5cy heads h prioritiz$ & exhau/$ available diplomatic *annels2 7iii7 su* *annels h fail$ to secure export controls f ! alli$ suppli] c\ntry t h ! same practical effect z ^? describ$ 9 subp>agraphs 7,a7 & 7,b7 ( subsection 7b77#a72 & 7iv7 cont9u$ delay w\ld mat]ially und]m9e ! national security ( ! ,unit$ ,/ates4 7#c7 ,ext5sion ( controls ,= ea* alli$ suppli] c\ntry = :i* ! cov]$ ag5cy heads submitt$ a c]tification describ$ 9 p>agraph 7#b77;,b71 ! ,secret>y ( ,comm]ce1 9 consultation ) ! ,secret>y ( ,/ate1 %all issue regulations t-- 7,a7 e/abli% jurisdiction ov] & apply c\ntrywide controls1 by directly controll+ ! equipm5t1 indirectly re/rict+ ! end-use ( ess5tial compon5ts ( su* equipm5t1 or bo?1 to cov]$ semiconductor manufactur+ equipm5t export$ f ! alli$ suppli] c\ntry2 7,b7 require a lic5se = ! s]vic+ ( any applicable item t is also subject to ! jurisdiction ( ! alli$ suppli] c\ntry 9 any cov]$ facility locat$ 9 a c\ntry ( conc]n & implem5t a policy ( d5y+ ! lic5se = su* s]vic+2 & 7,c7 e/abli% jurisdiction ov] applicable items f ! alli$ suppli] c\ntry & apply end-us] or end-use controls prohibit+ ! export ( su* items to any cov]$ facility4 7#d7 ,national security waiv] ,! cov]$ ag5cy heads may jo9tly grant a "o-"t waiv] to ext5d ! #aej-;day deadl9e = c]tification "u p>agraph 7#b7 by n m ?an #ij days1 if ! cov]$ ag5cy heads1 ) concurr5ce f ! ,secret>y ( ,def5se & ! ,secret>y ( ,en]gy1 jo9tly-- 7,a7 submit a report to ! appropriate congressional committees describ+-- 7i7 ju/ification = :y ! deadl9e c\ld n be met2 & 7ii7 ! int]im /eps ! cov]$ ag5cy heads h tak5 to prev5t /ockpil+2 & 7,b7 det]m9e & c]tify to ! appropriate congressional committees t-- 7i7 ! ext5sion is 9 ! national security int]e/ ( ! ,unit$ ,/ates1 despite ! risk t c\ntries ( conc]n may take advantage ( ! delay to fur!r /ockpile cov]$ semiconductor manufactur+ equipm5t2 & 7ii7 ! gov]nm5t ( ! alli$ suppli] c\ntry is tak+ concrete1 v]ifiable /eps1 pursuant to _! dome/ic laws & regulations & z exp$iti\sly z possible1 to adopt & implem5t controls t h ! same practical effect z1 or are m /r+5t ?an1 ! controls t w\ld o!rwise be impos$ "u p>agraph 7#c74 7d7 ,report ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 & annually !reaft]1 ! cov]$ ag5cy heads %all provide to ! appropriate congressional committees a report t includes-- 7#a7 a li/ ( all cov]$ semiconductor manufactur+ equipm5t2 7#b7 a li/ ( all entities t own or op]ate a cov]$ facility2 7#c7 ! scope ( ! c\ntrywide controls impos$ by ! ,unit$ ,/ates & alli$ suppli] c\ntries on ea* cov]$ semiconductor manufactur+ equipm5t id5tifi$ pursuant to p>agraph 7#a72 7#d7 a summ>y ( diplomatic engagem5ts & unilat]al actions und]tak5 by ! cov]$ ag5cy heads 9 ! #ab-mon?s p]iod prior to ! submission ( ! report to close any gap among alli$ suppli] c\ntries 9 ! c\ntrywide controls impos$ by su* c\ntries = cov]$ semiconductor manufactur+ equipm5t2 & 7#e7 a c]tification t ! export ( any cov]$ semiconductor manufactur+ equipm5t to a c\ntry ( conc]n & ! export ( any applicable items to any cov]$ facility1 or s]vic+ ( any su* item locat$ 9 a c\ntry ( conc]n1 requires a lic5se issu$ by ! ,unit$ ,/ates or an alli$ suppli] c\ntry1 ) a policy ( d5y+ su* lic5se4 7e7 ,t]m9ation & reimposition ( controls ^u alli$ action 7#a7 ,t]m9ation or modification ,! ,secret>y ( ,comm]ce1 9 consultation ) ! ,secret>y ( ,/ate1 may t]m9ate or modify any control impos$ "u subsection 7c77#c7 = items export$ f an alli$ suppli] c\ntry1 if ! c\ntry has e/abli%$ controls1 includ+ lic5s+ policies1 t h ! same practical effect z ^? describ$ 9 subsection 7b77#a74 7#b7 ,reimposition ,if1 aft] t]m9at+ or modify+ a control "u p>agraph 7#a71 ! cov]$ ag5cy heads det]m9e t ! alli$ suppli] c\ntry has mat]ially weak5$1 susp5d$1 or revok$ ! control t ju/ifi$ ! t]m9ation or modification "u p>agraph 7#a71 ! ,secret>y ( ,comm]ce %all1 9 consultation ) ! ,secret>y ( ,/ate & n lat] ?an #fj days aft] mak+ su* det]m9ation-- 7,a7 notify ! appropriate congressional committees ( su* det]m9ation2 & 7,b7 reimpose ! control "u subsection 7c77#c7 t 0 t]m9at$ or modifi$ "u p>agraph 7#a74 7f7 ,rule ( con/ruction ,no?+ 9 ?is ,act may be con/ru$ z dim9i%+ or sup]s$+ ! au?ority ( ! ,secret>y ( ,comm]ce to control ! export1 reexport1 or 9-c\ntry transf] ( items "u ! ,export ,control ,re=m ,act ( #bjah 7#ej ,u4,s4,c4 #dhja et seq474 7g7 ,def9itions ,9 ?is section3 7#a7 ,advanc$-node integrat$ circuits ,! t]m advanc$-node integrat$ circuits has ! mean+ giv5 t t]m 9 section #ggb4a ( ! ,export ,adm9i/ration ,regulations4 7#b7 ,alli$ suppli] c\ntry ,! t]m alli$ suppli] c\ntry means any c\ntry t-- 7,a7 is n a c\ntry ( conc]n2 & 7,b7 is engag$ 9 ! production ( cov]$ semiconductor manufactur+ equipm5t4 7#c7 ,applicable item ,! t]m applicable item means any item t is or c be made subject to ! ,export ,adm9i/ration ,regulations1 includ+-- 7,a7 a ,unit$ ,/ates-orig9 item2 7,b7 a =eign-produc$ item t is ! direct product (1 or produc$ by plants or major compon5ts t are ! direct product (1 ,unit$ ,/ates-orig9 s(tw>e or te*nology subject to ! ,export ,adm9i/ration ,regulations2 7,c7 a =eign-produc$ item ) m ?an z]o p]c5t de m9imis ,unit$ ,/ates-orig9 cont5t2 & 7,d7 a =eign-produc$ item t conta9 ,unit$ ,/ates-orig9 or =eign-produc$ integrat$ circuits t are presumptively design$ or produc$1 directly or indirectly1 ) te*nology1 s(tw>e1 or equipm5t t is subject to ! ,export ,adm9i/ration ,regulations4 7#d7 ,appropriate congressional committees ,! t]m appropriate congressional committees means-- 7,a7 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs & ! ,committee on ,=eign ,relations ( ! ,s5ate2 & 7,b7 ! ,committee on ,=eign ,affairs ( ! ,h\se ( ,repres5tatives4 7#e7 ,capabilities comp>able to ^? ( ! product sold by ! global m>ket lead] ,! t]m capabilities comp>able to ^? ( ! product sold by ! global m>ket lead] means1 consid]+ co/1 ?r\ghput1 reliability1 precision1 & any o!r relevant factors1 advanc$-node integrat$ circuit mak]s headqu>t]$ outside ( c\ntries ( conc]n1 :5 select+ a tool = use 9 high-volume manufactur+1 w\ld be indiff]5t ab\t us+1 or w\ld pref] to use1 ! tool produc$ by ! c\ntry ( conc]n1 r ?an a tool sold by ! company ) ! greate/ %>e ( ! global m>ket = tools us$ to accompli% ! same function4 7#f7 ,c\ntry ( conc]n ,! t]m c\ntry ( conc]n has ! mean+ giv5 ! t]m cov]$ nation 9 section #dhgb7;f7 ( title #aj1 ,unit$ ,/ates ,code4 7#g7 ,c\ntrywide controls ,! t]m c\ntrywide controls means lic5s+ requirem5ts1 ) a policy ( d5y+ any su* lic5se1 = ! export1 reexport1 9-c\ntry transf]1 or s]vic+ ( specifi$ items to any de/9ation )9 a c\ntry ( conc]n1 exclud+ exports :]e ! de/9ation is a fabrication facility t exi/$ z ( ! date ( ! enactm5t ( ?is ,act & rema9s own$ & op]at$ by a company headqu>t]$1 & ! ultimate p>5t company ( :i* is headqu>t]$1 outside ( any c\ntry ( conc]n4 7#h7 ,cov]$ ag5cy heads ,! t]m cov]$ ag5cy heads means ! ,secret>y ( ,comm]ce1 act+ ?r\gh ! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security1 & ! ,secret>y ( ,/ate4 7#i7 ,cov]$ facility ,! t]m cov]$ facility means-- 7,a7 a facility engag$ 9 ! production ( advanc$-node integrat$ circuits :i* is own$ or op]at$ by an entity headqu>t]$ 91 or ^: ultimate p>5t company is headqu>t]$ 91 a c\ntry ( conc]n2 or 7,b7 any facility own$ or op]at$ by1 or 9 common own]%ip or control )-- 7i7 any entity ref]5c$ 9 subp>agraphs 7,a7 or 7,b7 ( section #eidi7;j77#c7 ( ! ,james ,m4 ,inh(e ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #bjbc 7,public ,law #aag-bfc2 #da ,u4,s4,c4 #dgac note72 7ii7 ,hua ,hong ,semiconductor ,limit$2 7iii7 ,huawei ,te*nologies ,company2 7iv7 any produc]1 manufactur]1 or develop] ( semiconductor manufactur+ equipm5t t is headqu>t]$ 91 or ! ultimate p>5t company ( :i* is headqu>t]$ 91 a c\ntry ( conc]n2 or 7v7 any entity t is a subsidi>y1 affiliate1 or successor to1 or has a jo9t v5ture1 team+ agreem5t1 jo9t developm5t or rese>* agreem5t1 te*nology transf] or collaboration agreem5t1 or o!r simil> type ( arrangem5t ) an entity describ$ 9 any ( clauses 7i7 ?r\gh 7iv74 7#aj7 ,cov]$ semiconductor manufactur+ equipm5t ,! t]m cov]$ semiconductor manufactur+ equipm5t-- 7,a7 means semiconductor manufactur+ equipm5t or a compon5t !re= t-- 7i7 is an applicable item2 & 7ii7 ! cov]$ ag5cy heads det]m9e no c\ntry ( conc]n produces 9 suffici5t volumes & ) capabilities comp>able to ^? ( ! product sold by ! global m>ket lead]1 z ( ! date ( ! enactm5t ( ?is ,act2 & 7,b7 includes1 at a m9imum-- 7i7 all semiconductor manufactur+ equipm5t1 mat]ials1 & s(tw>e t1 z ( ! date ( ! enactm5t ( ?is ,act1 require a lic5se = ! export1 reexport1 or 9-c\ntry transf] to any de/9ation 9 a c\ntry ( conc]n2 7ii7 all deep ultraviolet imm]sion photoli?ography ma*9es1 ?r\gh silicon via deposition & et* tools1 cryog5ic et* equipm5t1 & cobalt deposition equipm5t2 & 7iii7 all semiconductor manufactur+ equipm5t or compon5ts specifi$ 9 ,export ,control ,classification ,numb] #c;,b#iic 7z 9 effect on ! date ( ! enactm5t ( ?is ,act7 except any item ! cov]$ ag5cy heads det]m9e d n meet ! requirem5ts ( subp>agraph 7,a74 7#aa7 ,export2 9-c\ntry transf]2 reexport2 export adm9i/ration regulation ,! t]ms export1 9-c\ntry transf]1 reexport1 & ,export ,adm9i/ration ,regulations h ! mean+s giv5 su* t]ms 9 section #agdb ( ! ,export ,control ,re=m ,act ( #bjah 7#ej ,u4,s4,c4 #dhja74 7#ab7 ,9 suffici5t volumes ,! t]m 9 suffici5t volumes means 9 volumes suffici5t to meet #ge p]c5t ( curr5t dem& f all c\ntries ( conc]n4 7#ac7 ,s]vic+ ,! t]m s]vic+ means any s]vic+ ( equipm5t or compon5ts1 :e!r 9-p]son or remote1 includ+ in/allation1 calibration1 repair1 ov]haul+1 refurbi%+1 te/+1 diagnos+1 updat+ s(tw>e or firmw>e1 tra9+1 field s]vices1 application support eng9e]+1 cu/omization1 te*nical assi/ance1 process adju/m5ts1 tr\ble%oot+1 & transf] ( indu/ry be/ practices = ma9t5ance4