,,ii #aaith ,,congress #b;d ,session ,s4 #edjj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ae1 #bjbf,mr4 ,curtis introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,a ,,bill ,to provide for multilateral semiconductor technology supply chain coordination1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,semiconductor ,technology ,resilience1 ,integrity1 and ,defense ,enhancement ,act or the ,,stride ,act4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 the global semiconductor technology supply chain is critical to ,united ,states and allied national security1 economic competitiveness1 and technological leadership2 7#b7 the ,chinese ,communist ,party is pursuing strategies to dominate the semiconductor technology industry to assist in its military modernization efforts and human rights abuses through nonmarket practices1 export control violations and avoidance1 economic espionage1 military-civil fusion1 and predatory investment2 7#c7 the integrity of the global semiconductor technology supply chain requires coordinated action with allied and partner countries to prevent technological capture by the ,chinese ,communist ,party and other foreign adversaries2 7#d7 unilateral export controls for protecting critical semiconductor technologies can be amplified with multilateral coordination2 and 7#e7 fully utilizing certain unilateral ,united ,states export control authorities1 including the ,foreign ,direct ,product ,rule1 has proven effective at preventing circumvention or avoidance of ,united ,states export controls through third-country production4 #c4 ,statement of policy ,it is the policy of the ,united ,states to-- 7#a7 maintain ,united ,states and allied partner technological leadership in semiconductor technology research1 design1 manufacturing1 and advanced materials2 7#b7 prevent the capture by foreign adversaries of key chokepoints in the global semiconductor technology supply chain2 7#c7 coordinate with allied and partner countries to expand and enhance semiconductor technology protection2 7#d7 ensure that ,united ,states-origin technology and intellectual property1 including the direct products of ,united ,states-origin technology1 do not contribute to the ,chinese ,communist ,party's military modernization1 human rights abuses1 and pursuit of technological dominance over the ,united ,states and its allies and partners2 and 7#e7 promote resilient1 secure1 and trusted semiconductor supply chains among ,united ,states allies and partners4 #d4 ,multilateral semiconductor technology supply chain coordination 7a7 ,in general ,the ,secretary of ,state shall coordinate with governments of countries that maintain significant capabilities in semiconductor technology research1 design1 manufacturing1 materials1 equipment1 or equipment subsystems and components to establish coordinated and expanded approaches for protecting critical semiconductor technologies from acquisition by the ,chinese ,communist ,party and other foreign adversaries of the ,united ,states and its allies and partners4 7b7 ,coordination objectives ,in carrying out subsection 7a71 the ,secretary of ,state shall seek to achieve-- 7#a7 alignment of export control policies regarding semiconductor technology manufacturing equipment1 including lithography systems1 deposition equipment1 etching tools1 thermocompression bonding equipment1 resist processing tools1 chemical mechanical planarization tools1 cleaning tools1 handling tools1 assembly1 packaging1 and test tools1 and inspection systems and the critical subcomponents needed to produce such equipment2 7#b7 expanded restrictions on semiconductor technology design tools1 intellectual property transfers1 equipment servicing1 and technical assistance that could enable indigenous semiconductor technology development capabilities in countries of concern2 7#c7 harmonized approaches to controlling dual-use semiconductor technology materials1 including photoresists1 specialty gases1 and advanced substrates2 7#d7 joint monitoring1 enforcement1 and administration mechanisms to prevent circumvention of semiconductor technology controls through third-country entities as well as prevent foreign backfilling of restricted items2 7#e7 information sharing regarding semiconductor technology transfer risks1 end-user verification1 and supply chain security threats2 and 7#f7 establishment of trusted supplier networks for critical semiconductor technology components and manufacturing services4 7c7 ,consequences for non-,cooperation 7#a7 ,assessment of cooperation ,the ,secretary of ,state1 in consultation with the ,secretary of ,commerce1 shall regularly assess the extent to which countries described in subsection 7a7 are implementing measures consistent with ,united ,states policy described in section #c4 7#b7 ,determination of insufficient security measures ,if the ,secretary of ,state determines that a country described in subsection 7a7 is not implementing security measures sufficient to fully prevent semiconductor technology transfer to countries of concern1 the ,secretary shall-- 7,a7 provide a detailed explanation of the specific deficiencies in the country's semiconductor technology protection measures2 7,b7 not later than #ba days after making the determination1 request the ,secretary of ,commerce to convene a meeting of the ,export ,advisory ,review ,board to identify and execute a plan of action to address the insufficient security measures2 and 7,c7 not later than #cj days after making the determination1 notify the appropriate congressional committees of the determination and provide routine updates on the ,export ,advisory ,review ,board meeting request and plan of action described in subparagraph 7,b74 7#c7 ,enhanced foreign direct product rule application ,in carrying out the process described in paragraph 7#b77;,b7 with respect to a country the ,secretary determines under paragraph 7#b7 is not implementing security measures sufficient to fully prevent semiconductor technology transfer to countries of concern1 the ,secretary of ,state shall provide to the ,export ,advisory ,review ,board-- 7,a7 recommendations for the application of ,foreign ,direct ,product ,rule restrictions to semiconductor technology produced in the country that incorporate ,united ,states-origin technology1 software1 or equipment2 7,b7 recommended entities for the expansion of ,entity ,list designations for semiconductor technology supply chain companies or research institutions in the country that pose technology transfer risks2 and 7,c7 guidance on what additional steps may be needed to prevent foreign backfilling of ,united ,states technology in restricted sectors or entities in countries of concern4 7d7 ,reports 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 and every #ij days thereafter1 the ,secretary of ,state shall submit to the appropriate congressional committees a report on-- 7,a7 the status of diplomatic engagement with key semiconductor technology-producing countries2 7,b7 progress toward achieving the coordination objectives specified in subsection 7b72 7,c7 any determinations made under subsection 7c7 that a country is not implementing security measures sufficient to fully prevent semiconductor technology transfer to countries of concern2 and 7,d7 the effectiveness of multilateral coordination in preventing semiconductor technology transfer to countries of concern4 7#b7 ,form ,the report required by paragraph 7#a7 shall be submitted in unclassified form but may include a classified annex4 #e4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#b7 ,countries of concern ,the term countries of concern has the meaning given the term covered nation in section #dhgb7;f7 of title #aj1 ,united ,states ,code4 7#c7 ,entity list ,the term ,entity ,list means the list maintained by the ,bureau of ,industry and ,security of the ,department of ,commerce and set forth in ,supplement ,no4 #d to part #gdd of title #ae1 ,code of ,federal ,regulations1 or successor regulations4 7#d7 ,foreign direct product rule ,the term ,foreign ,direct ,product ,rule means the rule exercising ,united ,states export controls on an item produced in a foreign country for shipment or transmission to another foreign country or foreign person1 if the item-- 7,a7 is produced using technology or software that is otherwise subject to the jurisdiction of the ,united ,states2 7,b7 is produced with the use of a plant or major component of a plant that-- 7i7 is located outside the ,united ,states2 and 7ii7 has been created using the technology or software described in subparagraph 7,a72 or 7,c7 contains1 is commingled with1 is bundled with1 is drawn from1 or is produced by an item described in subparagraph 7,a7 or 7,b74 7#e7 ,semiconductor technology ,the term semiconductor technology includes-- 7,a7 integrated circuits1 microprocessors1 and memory devices2 7,b7 semiconductor manufacturing equipment and tools1 including subsystems and components2 7,c7 semiconductor design software and intellectual property2 7,d7 semiconductor materials and specialty chemicals2 7,e7 testing1 assembly1 and packaging equipment2 and 7,f7 any technology1 component1 or service that is essential to semiconductor design1 manufacturing1 or testing processes4