117 HR 9039 IH: No Chips for China Act U.S. House of Representatives 2022-09-29 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I117th CONGRESS2d SessionH. R. 9039IN THE HOUSE OF REPRESENTATIVESSeptember 29, 2022Mr. 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 concernedA BILLTo 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. .