Report and application of controls

(a)

Identifying chokepoints

Not later than 60 days after the date of the enactment of this Act, and annually thereafter, the covered agency heads shall—(1)jointly conduct a review to identify all covered semiconductor manufacturing equipment and all covered facilities; and(2)shall—(A)submit to the appropriate congressional committees a list of all such equipment and facilities; and(B)notify the public in the Federal Register when this submission has occurred.(b)

Diplomatic engagement

(1)

In general

The covered agency heads shall prioritize and, upon the date of the enactment of this Act, immediately engage in diplomatic efforts to encourage the governments of allied supplier countries to adopt—(A)countrywide controls, or other policies that have the same practical effect as countrywide controls, on covered semiconductor manufacturing equipment that are subject to the jurisdiction of such allied supplier country; and(B)license requirements for the export of all applicable items to any covered facility and the servicing of all applicable items at any covered facility, with a policy of denying such license.(2)

Briefing on diplomatic efforts

Not later than 90 days after the date of the enactment of this Act, the covered agency heads shall provide a briefing to members of the appropriate congressional committees that—(A)describes the status of diplomatic efforts to secure the adoption by allied supplier countries of the controls described in paragraph (1);(B)outlines and assesses positive incentives to encourage adoption of these controls; and(C)identifies—(i)countries that have not adopted the controls described in paragraph (1)(A);(ii)countries that have not adopted the controls described in paragraph (1)(B); and(iii)measures that the United States has taken to implement the controls described in subparagraphs (A) and (B) of paragraph (1).(c)

Application of controls and exhaustion of diplomatic recourse

(1)

Application of controls

Not later than 150 days after the date of the enactment of this Act, and annually thereafter, the Secretary of Commerce, in consultation with the Secretary of State, shall issue regulations that—(A)apply countrywide controls to covered semiconductor manufacturing equipment produced in the United States; and(B)apply comprehensive end-user or end-use restrictions to all covered facilities located in countries of concern.(2)

Exhaustion of diplomatic recourse

Except as provided in paragraph (4), for each allied supplier country, the covered agency heads shall jointly certify, not later than 150 days after the date of the enactment of this Act, to the appropriate congressional committees that either—(A)the country has implemented—(i)countrywide controls, or policies that have the same practical effect, on all semiconductor manufacturing equipment that is subject to the jurisdiction of the allied supplier country; and(ii)licensing requirements, with a policy of denying the license, for the export of all applicable items to any covered facility, or other policies with the same practical effect; or(B)(i)the country has not adopted the controls described in subparagraph (A) or (B) of subsection (b)(1);(ii)the covered agency heads have prioritized and exhausted available diplomatic channels;(iii)such channels have failed to secure export controls from the allied supplier country that have the same practical effect as those described in subparagraphs (A) and (B) of subsection (b)(1); and(iv)continued delay would materially undermine the national security of the United States.(3)

Extension of controls

For each allied supplier country for which the covered agency heads submitted a certification described in paragraph (2)(B), the Secretary of Commerce, in consultation with the Secretary of State, shall issue regulations that— (A) establish jurisdiction over and apply countrywide controls, by directly controlling the equipment, indirectly restricting the end-use of essential components of such equipment, or both, to covered semiconductor manufacturing equipment exported from the allied supplier country; (B)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 servicing; and(C)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 facility.(4)

National security waiver

The covered agency heads may jointly grant a one-time waiver to extend the 150-day deadline for certification under paragraph (2) by not more than 90 days, if the covered agency heads, with concurrence from the Secretary of Defense and the Secretary of Energy, jointly—(A)submit a report to the appropriate congressional committees describing—(i)justification for why the deadline could not be met; and(ii)the interim steps the covered agency heads have taken to prevent stockpiling; and(B)determine and certify to the appropriate congressional committees that—(i)the extension is in the national security interest of the United States, despite the risk that countries of concern may take advantage of the delay to further stockpile covered semiconductor manufacturing equipment; and(ii)the government of the allied supplier country is taking concrete, verifiable steps, pursuant to their domestic laws and regulations and as expeditiously as possible, to adopt and implement controls that have the same practical effect as, or are more stringent than, the controls that would otherwise be imposed under paragraph (3).(d)

Report

Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the covered agency heads shall provide to the appropriate congressional committees a report that includes—(1)a list of all covered semiconductor manufacturing equipment;(2)a list of all entities that own or operate a covered facility;(3)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 (1);(4)a summary of diplomatic engagements and unilateral actions undertaken by the covered agency heads in the 12-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 equipment; and(5)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 facility, or servicing of any such item located in a country of concern, requires a license issued by the United States or an allied supplier country, with a policy of denying such license.(e)

Termination and reimposition of controls upon allied action

(1)

Termination or modification

The Secretary of Commerce, in consultation with the Secretary of State, may terminate or modify any control imposed under subsection (c)(3) for items exported from an allied supplier country, if the country has established controls, including licensing policies, that have the same practical effect as those described in subsection (b)(1).(2)

Reimposition

If, after terminating or modifying a control under paragraph (1), the covered agency heads determine that the allied supplier country has materially weakened, suspended, or revoked the control that justified the termination or modification under paragraph (1), the Secretary of Commerce shall, in consultation with the Secretary of State and not later than 60 days after making such determination—(A)notify the appropriate congressional committees of such determination; and(B)reimpose the control under subsection (c)(3) that was terminated or modified under paragraph (1).(f)

Rule of construction

Nothing in this Act may be construed as diminishing or superseding the authority of the Secretary of Commerce to control the export, reexport, or in-country transfer of items under the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.).(g)

Definitions

In this section:(1)

Advanced-node integrated circuits

The term advanced-node integrated circuits has the meaning given that term in section 772.1 of the Export Administration Regulations.(2)

Allied supplier country

The term allied supplier country means any country that—(A)is not a country of concern; and(B)is engaged in the production of covered semiconductor manufacturing equipment.(3)

Applicable item

The term applicable item means any item that is or can be made subject to the Export Administration Regulations, including—(A)a United States-origin item;(B)a foreign-produced item that is the direct product of, or produced by plants or major components that are the direct product of, United States-origin software or technology subject to the Export Administration Regulations;(C)a foreign-produced item with more than zero percent de minimis United States-origin content; and(D)a foreign-produced item that contain United States-origin or foreign-produced integrated circuits that are presumptively designed or produced, directly or indirectly, with technology, software, or equipment that is subject to the Export Administration Regulations.(4)

Appropriate congressional committees

The term appropriate congressional committees means—(A)the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate; and(B)the Committee on Foreign Affairs of the House of Representatives.(5)

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 means, considering cost, throughput, reliability, precision, and any other relevant factors, advanced-node integrated circuit makers headquartered outside of countries of concern, when selecting a tool for use in high-volume manufacturing, would be indifferent about using, or would prefer to use, the tool produced by the country of concern, rather than a tool sold by the company with the greatest share of the global market for tools used to accomplish the same function.(6)

Country of concern

The term country of concern has the meaning given the term covered nation in section 4872(f) of title 10, United States Code.(7)

Countrywide controls

The term countrywide controls means licensing requirements, with a policy of denying any such license, for the export, reexport, in-country transfer, or servicing of specified items to any destination within a country of concern, 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 headquartered, and the ultimate parent company of which is headquartered, outside of any country of concern.(8)

Covered agency heads

The term covered agency heads means the Secretary of Commerce, acting through the Under Secretary of Commerce for Industry and Security, and the Secretary of State.(9)

Covered facility

The term covered facility means—(A)a facility engaged in the production of advanced-node integrated circuits which is owned or operated by an entity headquartered in, or whose ultimate parent company is headquartered in, a country of concern; or(B)any facility owned or operated by, or in common ownership or control with—(i)any entity referenced in subparagraphs (A) or (B) of section 5949(j)(3) of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (Public Law 117–263; 41 U.S.C. 4713 note);(ii)Hua Hong Semiconductor Limited;(iii)Huawei Technologies Company;(iv)any producer, manufacturer, or developer of semiconductor manufacturing equipment that is headquartered in, or the ultimate parent company of which is headquartered in, a country of concern; or(v)any entity that is a subsidiary, affiliate, or successor to, or has a joint venture, teaming agreement, joint development or research agreement, technology transfer or collaboration agreement, or other similar type of arrangement with an entity described in any of clauses (i) through (iv).(10)

Covered semiconductor manufacturing equipment

The term covered semiconductor manufacturing equipment—(A)means semiconductor manufacturing equipment or a component therefor that—(i)is an applicable item; and(ii)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 leader, as of the date of the enactment of this Act; and(B)includes, at a minimum—(i)all semiconductor manufacturing equipment, materials, and software that, as of the date of the enactment of this Act, require a license for the export, reexport, or in-country transfer to any destination in a country of concern;(ii)all deep ultraviolet immersion photolithography machines, through silicon via deposition and etch tools, cryogenic etch equipment, and cobalt deposition equipment; and(iii)all semiconductor manufacturing equipment or components specified in Export Control Classification Number 3B993 (as in effect on the date of the enactment of this Act) except any item the covered agency heads determine do not meet the requirements of subparagraph (A).(11)

Export; in-country transfer; reexport; export administration regulation

The terms export, in-country transfer, reexport, and Export Administration Regulations have the meanings given such terms in section 1742 of the Export Control Reform Act of 2018 (50 U.S.C. 4801).(12)

In sufficient volumes

The term in sufficient volumes means in volumes sufficient to meet 75 percent of current demand from all countries of concern.(13)

Servicing

The term servicing means any servicing of equipment or components, whether in-person or remote, including installation, calibration, repair, overhauling, refurbishing, testing, diagnosing, updating software or firmware, training, field services, application support engineering, customization, technical assistance, process adjustments, troubleshooting, and transfer of industry best practices for maintenance.