[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3576-S3578]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6451. Mr. BANKS (for himself, Ms. Warren, Mr. Cotton, Ms. Cortez
Masto, Mr. Ricketts, Mr. Kim, and Mr. McCormick) 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 E of title XII, add the following:
SEC. 1271. LICENSE REQUIREMENT FOR EXPORTS OF COVERED
INTEGRATED CIRCUITS TO COUNTRIES OF CONCERN.
Part I of the Export Control Reform Act of 2018 (50 U.S.C.
4811 et seq.) is amended by inserting after section 1758 the
following:
``SEC. 1758A. CONTROL OF EXPORTS OF COVERED INTEGRATED
CIRCUITS.
``(a) Definitions.--In this section:
``(1) Allied country.--The term `allied country' means any
country listed in Country Group A under Supplement No. 1 to
part 740 of the Export Administration Regulations (as in
effect on January 1, 2026).
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means the Committee on
Foreign Affairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
``(3) Commerce control list.--The term `Commerce Control
List' means the list set forth in Supplement No. 1 to part
774 of the Export Administration Regulations.
``(4) Country of concern.--The term `country of concern'
means--
``(A) the People's Republic of China, including the Hong
Kong and Macau Special Administrative Regions;
``(B) the Republic of Cuba;
``(C) the Islamic Republic of Iran;
``(D) the Democratic People's Republic of Korea;
``(E) the Russian Federation; and
``(F) any other foreign country listed in Country Group D:5
under Supplement No. 1 to part 740 of the Export
Administration Regulations, as published on January 1, 2026.
``(5) Covered integrated circuit.--
``(A) In general.--Subject to subparagraphs (B), (C), and
(D), the term `covered integrated circuit' means--
``(i) an integrated circuit, computer, or other product--
``(I) classified under Export Control Classification Number
3A090 or 4A090 or related Export Control Classification
Numbers; or
``(II) that is functionally equivalent or substantially
similar to a circuit, computer, or product described in
subclause (I), including certain similar products listed
under Export Control Classification Number 5A002.z; or
``(ii) an integrated circuit that has 1 or more digital
processing units with--
``(I) a total processing performance of 4,800 or more;
[[Page S3577]]
``(II) a total processing performance of 2,400 or more and
a performance density of 1.6 or more;
``(III) a total processing performance of 1,600 or more and
a performance density of 3.2 or more; or
``(IV) a total DRAM bandwidth of 1,400 gigabytes per second
or more, interconnect bandwidth of 1,100 gigabytes per second
or more, or a sum of DRAM bandwidth and interconnect
bandwidth of 1,700 gigabytes per second or more.
``(B) Authority to update technical parameters.--Beginning
24 months after the date of the submission to Congress of the
American Artificial Intelligence Victory Strategy required in
subsection (f), the Under Secretary of Commerce for Industry
and Security may add or modify technical parameters for the
definition of `covered integrated circuit' for purposes of
this section though notice in the Federal Register, so long
as--
``(i) the addition or modification poses no adverse impact
on the national security of the United States; and
``(ii) not fewer than 30 days before the addition or
modification takes effect, the Under Secretary--
``(I) consults with the appropriate congressional
committees regarding such addition or modification; and
``(II) in consultation with each agency that is part of the
Operating Committee for Export Policy, updates the American
Artificial Intelligence Victory Strategy required in
subsection (f) and submits such update to the appropriate
congressional committees.
``(C) Products included.--Except as provided in
subparagraph (D), the term `covered integrated circuit'
includes a product containing such a covered integrated
circuit.
``(D) Exclusion.--The term `covered integrated circuit'
does not include--
``(i) covered integrated circuits or products containing a
covered integrated circuit that are not designed or marketed
for use in a data center; or
``(ii) microprocessor microcircuits, such as central
processing units, that are not graphics processing units or
similar products.
``(6) Operating committee for export policy.--The term
`Operating Committee for Export Policy' means the Operating
Committee for Export Policy referred to in section 1763(c) of
the Export Control Reform Act of 2018 (50 U.S.C. 4822(c)).
``(7) Performance density; total processing performance.--
The terms `performance density' and `total processing
performance' have the meanings given those terms in, and are
calculated as provided for under, Export Control
Classification Number 3A090 in the Commerce Control List (as
in effect on January 1, 2026).
``(8) Restricted integrated circuit.--
``(A) In general.--Subject to subparagraphs (B), (C), and
(D), the term `restricted integrated circuit' means a covered
integrated circuit that is--
``(i) an integrated circuit that has 1 or more digital
processing units--
``(I) with a total processing performance of 21,000 or
more; or
``(II) with a total processing performance of 1,600 or more
and a performance density of 21 or more; or
``(ii) an integrated circuit that was first marketed for
sale after January 1, 2026, and that has 1 or more digital
processing units with--
``(I) a total processing performance of 4,800 or more;
``(II) a total processing performance of 2,400 or more and
a performance density of 1.6 or more; or
``(III) a total processing performance of 1,600 or more and
a performance density of 3.2 or more.
``(B) Authority to update technical parameters.--The Under
Secretary of Commerce for Industry and Security may add or
modify technical parameters for the definition of `restricted
integrated circuit' in the same manner and subject to the
same restrictions as the authority described in paragraph
(6)(B).
``(C) Products included.--Except as provided by
subparagraph (D), the term `restricted integrated circuit'
includes a product containing such a restricted integrated
circuit.
``(D) Exclusion.--The term `restricted integrated circuit'
does not include--
``(i) restricted integrated circuits or products containing
a restricted integrated circuit that are not designed or
marketed for use in a data center; or
``(ii) microprocessor microcircuits, such as central
processing units, that are not graphics processing units or
similar products.
``(9) Trusted united states person.--The term `trusted
United States person' means any United States person
designated as a trusted United States person pursuant to
subsection (h)(2).
``(b) License Requirement.--
``(1) In general.--Beginning on the date of the enactment
of this section, the Under Secretary of Commerce for Industry
and Security, in consultation with each agency that is part
of the Operating Committee for Export Policy, shall require a
license for the export, reexport, or in-country transfer of a
covered integrated circuit or a restricted integrated circuit
to an entity that is located or headquartered in, or the
ultimate parent company of which is headquartered in, a
country of concern.
``(2) General license prohibited.--The Under Secretary of
Commerce for Industry and Security may not issue a general
license for the purpose of fulfilling the license requirement
in paragraph (1).
``(c) Certification to Congress.--
``(1) Certification requirement.--Not fewer than 30 days
prior to approving any license for the export, reexport, or
in-country transfer of a covered integrated circuit to an
entity that is located or headquartered in, or the ultimate
parent company of which is headquartered in, a country of
concern, the Under Secretary of Commerce for Industry and
Security, in consultation with each agency that is part of
the Operating Committee for Export Policy, shall submit to
the appropriate congressional committees a copy of the
license application and proposed license, including--
``(A) the quantity of covered integrated circuit,
identified by an Export Control Classification Number, as
applicable, and by technical parameters of the covered
integrated circuit;
``(B) the ultimate consignee or end-user of the covered
integrated circuit;
``(C) any and all license conditions;
``(D) a certification that the export, reexport, or in-
country transfer of the covered integrated circuit has
verifiable and enforceable mechanisms for ensuring the
ultimate consignee or end-user has not, does not, and will
not support or enable, directly or indirectly, the military,
intelligence, surveillance, or cyber-enabled capabilities of
a country of concern, including--
``(i) that the United States Government has no information
indicating that the ultimate consignee or end-user has, does,
or will support or enable, directly or indirectly, the
military, intelligence, surveillance, or cyber-enabled
capabilities of a country of concern;
``(ii) an explanation of how the license conditions support
the certification; and
``(iii) in the case that the license concerns a country of
concern that engages in a military-civil fusion policy or
maintains a law that requires persons to provide support and
assistance to national security bodies, public security
bodies, or relevant military bodies of the country of
concern, details on how the license conditions address the
specific threats arising from such policy or law;
``(E) a certification that approving the license will not
adversely impact the defense industrial base of the United
States, including the availability of covered integrated
circuits for United States persons, including all of the
major subcomponents of the covered integrated circuits, such
as high-bandwidth memory;
``(F) a certification that approving the license will not
adversely impact the technology leadership and advantage of
the United States in total nationally-installed processing
power capacity relative to the country of concern related to
the ultimate consignee or end user of the covered integrated
circuit;
``(G) a certification that approving the license will not
adversely impact the national security of the United States;
``(H) the underlying analyses supporting the certifications
required in subparagraphs (D), (E), (F), and (G); and
``(I) a technical assessment of how the export, reexport,
or in-country transfer of the covered integrated circuit to
an entity that is located or headquartered in, or the
ultimate parent company of which is headquartered in, a
country of concern affects the artificial intelligence
leadership of the United States, including in terms of global
market share, in artificial intelligence models, artificial
intelligence cloud services, and covered integrated circuits,
respectively.
``(2) Extension of review period for certain submissions.--
In the case that a submission to Congress under paragraph (1)
is submitted on a date that is on or after July 10 and on or
before September 7 in any year, paragraph (1) shall apply by
substituting `60 days' for `30 days'.
``(3) Limitation.--The license described in subsection (b)
may not be issued until the date that is not fewer than 30
days after the committees described in paragraph (1) received
the certification required in such paragraph.
``(d) Termination of Licenses.--Any license issued or
approved prior to the date of the enactment of this section
for the export, reexport, or in-country transfer of a covered
integrated circuit to an entity that is located or
headquartered in, or the ultimate parent company of which is
headquartered in, a country of concern is terminated.
``(e) Temporary Prohibition.--The Under Secretary of
Commerce for Industry and Security, in consultation with each
agency that is part of the Operating Committee for Export
Policy, shall deny all licenses for the export, reexport, or
in-country transfer of a covered integrated circuit to an
entity that is located or headquartered in, or the ultimate
parent company of which is headquartered in, a country of
concern, within one business day of receiving any application
for such a license, until the date that is 14 days after the
submission to Congress of the American Artificial
Intelligence Victory Strategy required in subsection (f).
``(f) American Artificial Intelligence Victory Strategy.--
The Under Secretary of Commerce for Industry and Security, in
consultation with each agency that is part of the Operating
Committee for Export Policy, shall submit to the appropriate
congressional committees an American Artificial Intelligence
Victory Strategy that details--
[[Page S3578]]
``(1) a whole-of-government framework to win the artificial
intelligence race;
``(2) the national security and economic implications of
the People's Republic of China winning the artificial
intelligence race;
``(3) the effect that access by countries of concern to
covered integrated circuits, semiconductor manufacturing
equipment, and related subcomponents that are from the United
States or allied countries would have on the artificial
intelligence race, the capabilities of the People's Republic
of China, and United States national security;
``(4) recommendations for policy changes the United States
Government should make to best position the United States in
the artificial intelligence race against the People's
Republic of China;
``(5) an assessment of the implications of the export,
reexport, or in-country transfer of covered integrated
circuits to countries of concern for the military,
intelligence, surveillance, or cyber-enabled capabilities of
such countries; and
``(6) an assessment of the covered integrated circuit
production numbers and capabilities of the People's Republic
of China for fiscal years 2026 and 2027, including--
``(A) a determination of whether the People's Republic of
China would cease or reduce its efforts to pursue indigenous
production and use of Chinese-designed and manufactured
covered integrated circuits if entities located or
headquartered in, or the ultimate parent company of which is
headquartered in, the People's Republic of China are provided
access to covered integrated circuits designed in the United
States;
``(B) a comparison of the covered integrated circuit
production numbers and capabilities of the People's Republic
of China to the covered integrated circuit production numbers
and capabilities of the United States and allies of the
United States; and
``(C) a quantitative analysis, to the extent feasible,
examining the artificial intelligence capabilities of
countries of concern if such countries relied solely on
indigenous production of covered integrated circuits using
indigenously produced manufacturing equipment and related
subcomponents.
``(g) License Prohibition for Restricted Integrated
Circuits.--The Under Secretary of Commerce for Industry and
Security, in consultation with each agency that is part of
the Operating Committee for Export Policy, shall deny all
licenses for the export, reexport, or in-country transfer of
a restricted integrated circuit to an entity that is located
or headquartered in, or the ultimate parent company of which
is headquartered in, a country of concern.
``(h) Exemption From Certain License Requirements for
Trusted United States Persons.--
``(1) In general.--The requirement for a license under
sections 742.6 and 744.23 of the Export Administration
Regulations shall not apply to the export, reexport, or in-
country transfer of a covered integrated circuit if the
covered integrated circuit--
``(A) is not destined for Macau, Hong Kong, or a country
listed in Country Group D:5 under Supplement No. 1 to part
740 of the Export Administration Regulations; and
``(B) will remain under the ownership and control of a
trusted United States person or a subsidiary of a trusted
United States person once the covered integrated circuit is
in operation.
``(2) Implementation.--Not later than 90 days after the
date of the enactment of this section, the Under Secretary of
Commerce for Industry and Security, in consultation with each
agency that is part of the Operating Committee for Export
Policy, shall--
``(A) seek input from the public regarding the standards
and requirements a United States person should be required to
meet to obtain a designation as a trusted United States
person;
``(B) based on such input, prescribe regulations
establishing such standards and requirements, which shall
include--
``(i) establishment by the United States person of
reasonable security standards, including physical security,
cybersecurity, remote access, secure covered integrated
circuit repair and disposal procedures, and other measures
designed to prevent the illicit transfer, diversion, or
access to covered integrated circuits;
``(ii) a requirement that the United States person may not
transfer or install a majority of its aggregate total
processing performance of covered integrated circuits outside
the United States;
``(iii) a requirement that not more than an aggregate 10
percent of the ultimate beneficial ownership of the United
States person may be held, directly or indirectly, by any
entity that primarily resides, is domiciled, or conducts the
majority of its business in a country of concern;
``(iv) robust know-your-customer standards;
``(v) a preference for sourcing advanced integrated
circuits and subcomponents from production facilities that
support the revival of semiconductor manufacturing in the
United States; and
``(vi) annual audit or attestation requirements to ensure
compliance with clauses (i), (ii), (iii), and (iv); and
``(C) prescribe regulations establishing the process by
which the Under Secretary of Commerce for Industry and
Security, in consultation with each agency that is part of
the Operating Committee for Export Policy, shall approve such
a designation.
``(3) Expansion to allied countries.--The Under Secretary
of Commerce for Industry and Security, in consultation with
each agency that is part of the Operating Committee for
Export Policy, shall consider options for securely expanding
the license exemption program described in this subsection to
certain allied countries.''.
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