[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3530-S3531]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6400. Mr. RICKETTS (for himself, Mr. Kim, Mr. Risch, and Mr.
Schumer) 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 appropriate place in title X, insert the following:
SEC. 10___. MULTILATERAL ALIGNMENT OF CONTROLS ON
SEMICONDUCTOR MANUFACTURING EQUIPMENT.
(a) Sense of Congress.--It is the sense of Congress that--
(1) export controls on semiconductor manufacturing
equipment and components represent one of the United States'
most effective defenses of this foundational technology;
(2) advanced computing applications like artificial
intelligence are transforming military affairs and the
balance of power;
(3) the United States and its allies have an advantage in
the foundational technologies that underpin advanced
computing applications, including advanced-node integrated
circuits and the equipment and software required to design
and produce advanced-node integrated circuits;
(4) robust controls on semiconductor manufacturing
equipment and components have been a bipartisan priority
across multiple administrations, reflecting a shared
recognition that protecting America's semiconductor advantage
is essential to national security;
(5) the adversaries of the United States are exploiting
gaps in the current export control regime;
(6) certain entities, including ChangXin Memory
Technologies, Hua Hong Semiconductor Limited, Huawei
Technologies Company, Semiconductor Manufacturing
International Corporation, and Yangtze Memory Technologies
Corporation are engaged in efforts to produce advanced-node
integrated circuits that are especially crucial for the
Military-Civil Fusion efforts of the People's Republic of
China and warrant comprehensive export controls to prevent
those companies from accessing items made with United States
technologies;
(7) companies located in adversary countries that produce
semiconductor manufacturing equipment are critical to
adversaries' efforts to overcome exports controls to develop
advanced-node integrated circuit production capabilities, and
such companies should not be permitted to utilize or benefit
from United States or allied technology or components;
(8) the United States Government should work closely with
allies and partners of the United States to align export
controls on semiconductor manufacturing equipment and
components to prevent gaps in controls, reduce the risk of
circumvention, and ensure a level global playing field; and
(9) securing a diplomatic agreement, including through the
use of positive incentives to encourage adoption of these
controls, is the best and most sustainable path to alignment.
(b) 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;
(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.
(c) 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).
(d) 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 (c)(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 (c)(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; and
(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).
(e) 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
[[Page S3531]]
a country of concern, requires a license issued by the United
States or an allied supplier country, with a policy of
denying such license.
(f) 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
(d)(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 (c)(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 (d)(3) that was
terminated or modified under paragraph (1).
(g) 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.).
(h) 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.
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