[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3527-S3528]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6398. Mr. RICKETTS (for himself and Mr. Kim) submitted an
amendment intended to be proposed by him to the bill S. 4784, to
authorize appropriations for fiscal year 2027 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the end of subtitle G of title X, add the following:
SEC. 1094. MULTILATERAL ALIGNMENT OF CONTROLS ON
SEMICONDUCTOR MANUFACTURING EQUIPMENT.
(a) Identifying Chokepoints.--Not later than 60 days after
the date of the enactment of this Act, and annually
thereafter, the Secretary of Commerce, acting through the
Under Secretary of Commerce for Industry and Security, and in
coordination with the Secretary of State, shall--
(1) conduct a review to identify all covered semiconductor
manufacturing equipment and all covered facilities;
(2) submit to the appropriate congressional committees a
list of all such equipment and facilities; and
(3) notify the public in the Federal Register when this
submission has occurred.
(b) Diplomatic Engagement.--
(1) In general.--The Secretary of Commerce, acting through
the Under Secretary of Commerce for Industry and Security,
and the Secretary of State should continue to prioritize and
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, with a policy of presumption of
denial, for the export, reexport, or in-country transfer of
all applicable items to any covered facility and for the
servicing of all applicable items at any covered facility.
(2) Briefing on diplomatic efforts.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of
Commerce, acting through the Under Secretary of Commerce for
Industry and Security, and the Secretary of State shall
jointly provide to members of the appropriate congressional
committees a briefing, in which the Secretaries describe the
status of diplomatic efforts to align the controls on covered
semiconductor manufacturing equipment imposed by allied
supplier countries with the controls imposed by the United
States.
(3) Certification on allied supplier countries.--Except as
provided in subsection (c)(3), for each allied supplier
country, the Secretary of Commerce, acting through the Under
Secretary of Commerce for Industry and Security, and the
Secretary of State 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 the controls described in
subparagraphs (A) and (B) of paragraph (1); or
(B)(i) the country has not adopted the controls described
in subparagraph (A) or (B) of paragraph (1);
(ii) the Secretary of Commerce, acting through the Under
Secretary of Commerce for Industry and Security, and the
Secretary of State have prioritized and exhausted available
diplomatic channels; and
(iii) continued delay would materially undermine the
national security of the United States.
(c) Controls on United States Equipment and Extension of
Controls.--
(1) Application of controls on united states equipment.--
Not later than 150 days after the date of the enactment of
this Act, and annually thereafter, the Secretary of Commerce,
acting through the Under Secretary of Commerce for Industry
and Security, shall issue regulations that--
(A) update United States countrywide controls to covered
semiconductor manufacturing equipment produced in the United
States; and
(B) update comprehensive United States end-user or end-use
restrictions to all covered facilities located in a country
of concern.
(2) Extension of controls to allied supplier countries.--
(A) In general.--Except as provided in subparagraph (B),
for any allied supplier country for which a certification is
submitted under subsection (b)(3)(B), the Secretary of
Commerce shall issue regulations, not later than the date of
the submission of such certification, that--
(i) establish United States jurisdiction over covered
semiconductor manufacturing equipment and applicable items
exported, reexported, or in-country transferred from, or
produced in, such country; and
(ii) apply--
(I) countrywide controls to all covered semiconductor
manufacturing equipment produced in such country;
(II) a license requirement, subject to a presumption of
denial, for the servicing of any applicable item located in a
covered facility; and
(III) end-user and end-use controls prohibiting the export,
reexport, or in-country transfer of an applicable item to any
covered facility.
(B) Deferral for anticipated alignment.--If, on or before
the deadline described in subparagraph (A), the Secretary of
Commerce and the Secretary of State jointly submit to the
appropriate congressional committees a report certifying that
the allied supplier country subject to subparagraph (A) has
committed to adopt, or is otherwise expected to adopt,
controls that have the same practical effect as those
described in subsection (b)(1), the Secretary of Commerce may
issue a one-time deferral of the effective date of the
regulations described in subsection (A) for a period of not
longer than 30 days from the date described in subparagraph
(A).
(3) National security waiver.--The Secretary of Commerce,
acting through the Under Secretary of Commerce for Industry
and Security, and the Secretary of State may jointly grant a
one-time waiver to extend the 150-day deadline for the
issuing of controls pursuant to paragraph (1) or paragraph
(2) by not more than 90 days, if the Secretary of Commerce
and the Secretary of State jointly--
(A) submit a report to the appropriate congressional
committees describing--
(i) the justification for why the deadline could not be
met; and
(ii) the interim steps the Secretaries 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; and
(ii) if applicable, 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 controls that have the same practical
effect as, or are more stringent than, the controls that
would otherwise be imposed under paragraph (2).
(d) Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
Secretary of Commerce, acting through the Under Secretary of
Commerce for Industry and Security, and the Secretary of
State shall jointly submit to the appropriate congressional
committees a report that includes--
(A) the scope of the export controls imposed by the United
States and allied supplier countries on any covered
semiconductor manufacturing equipment identified in the most
recent list submitted under subsection (a);
(B) a summary of diplomatic engagements and unilateral
actions undertaken by the Secretaries in the one-year period
prior to the submission of the report to close any gap in
countrywide controls imposed by allied supplier countries for
covered semiconductor manufacturing equipment; and
(C) a certification that the export, reexport, or in-
country transfer of any covered semiconductor manufacturing
equipment to a country of concern, the export of any
applicable items to any covered facility, and the servicing
of any such item located in a country of concern is
prohibited or requires a license issued by the United States
or an allied supplier country, subject to a presumption of
denial.
(2) Form.--Each report submitted under paragraph (1) shall
be submitted in unclassified form but may include a
classified annex.
(e) Nonpublication of Confidential Certifications and
Reports.--
(1) In general.--The Secretary of Commerce, acting through
the Under Secretary of Commerce for Industry and Security,
and the Secretary of State, as applicable, may elect to
submit to the appropriate congressional committees any
certification and report described in subsection (a), (c), or
(d) in a confidential manner.
(2) Committee safeguards.--The appropriate congressional
committees shall take such steps as may be necessary to
ensure that any certification or report submitted in
[[Page S3528]]
a confidential manner is not made publicly available.
(f) Compliance Assistance With Extension of Controls.--
Simultaneously with the issuing regulations under subsection
(c)(2), the Secretary of Commerce, acting through the Under
Secretary of Commerce for Industry and Security, may provide
to the principal executive officers of any company that
produces covered semiconductor manufacturing equipment in the
allied supplier country targeted in such regulations a letter
describing the regulations and the legal obligations imposed
by the regulations, including any penalty that may be imposed
under section 1760 of the Export Control Reform Act of 2018 (
50 U.S.C. 4819) for a violation of such regulations.
(g) Termination and Reimposition of Controls Upon Allied
Action.--
(1) Termination or modification.--The Secretary of
Commerce, acting through the Under Secretary of Commerce for
Industry and Security, may terminate or modify any regulation
issued under subsection (c)(2), if the country has
established controls, including licensing policies, that have
the same practical effect as the regulation to be terminated
or modified.
(2) Reimposition.--If, after terminating or modifying a
control under paragraph (1), the Secretary of Commerce,
acting through the Under Secretary of Commerce for Industry
and Security, determines that the allied supplier country has
materially weakened, suspended, or revoked the control that
justified the termination or modification under paragraph
(1), the Secretary shall, 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)(2) that was
terminated or modified under paragraph (1).
(h) Administrative Procedures.--The provisions of section
1762 of the Export Control Reform Act of 2018 (50 U.S.C.
4821) shall apply to this section in the same manner and to
the same extent as such provisions apply to the Export
Control Reform Act of 2018 (50 U.S.C. 4801 et seq.).
(i) Definitions.--In this section:
(1) The term ``advanced-node integrated circuits'' has the
meaning given that term in section 772.1 of the Export
Administration Regulations as in effect on January 1, 2026.
(2) 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) 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 contains 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) 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) 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) The term ``country of concern'' has the meaning given
the term ``covered nation'' in section 4872(f) of title 10,
United States Code.
(7) The term ``countrywide controls'' means, with respect
to semiconductor manufacturing equipment, a licensing
requirements, with a policy of presumption of denial, for the
export, reexport, or in-country transfer of the item to or in
a country of concern, and a licensing requirement, with a
policy of presumption of denial, for the servicing of the
item located in a country of concern, excluding exports
reexports, in-country transfers or servicing 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) 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) Semiconductor Manufacturing International Corporation;
(ii) Hua Hong Semiconductor Limited;
(iii) Huawei Technologies Company;
(iv) ChangXin Memory Technologies;
(v) Yangtze Memory Technologies Corporation;
(vi) 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
(vii) any entity that is a subsidiary or affiliate of or a
successor to any entity described in clauses (i) through
(vi).
(9) The term ``covered semiconductor manufacturing
equipment''--
(A) means semiconductor manufacturing equipment or a
component therefor that--
(i) is an applicable item; and
(ii) the Secretary of Commerce, acting through the Under
Secretary of Commerce for Industry and Security, and the
Secretary of State jointly determine that 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 deep ultraviolet immersion photolithography
machines, through silicon via deposition and etch tools,
cryogenic etch equipment, and cobalt deposition equipment;
and
(ii) all semiconductor manufacturing equipment or
components specified in Export Control Classification Number
3B001 or 3B002, or equipment meeting the parameters of Export
Control Classification Number 3B993.f.1 (excluding the
parameters described in 3B993.F.1.b2), as in effect on
January 1, 2026, except any item the Secretary of Commerce,
acting through the Under Secretary of Commerce for Industry
and Security, and the Secretary of State jointly determine
does not meet the requirements of subparagraph (A).
(10) 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).
(11) The term ``in sufficient volumes'' means in volumes
sufficient to meet 75 percent of current demand from all
countries of concern.
(12) 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.
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