[Congressional Record Volume 172, Number 113 (Monday, July 13, 2026)]
[Senate]
[Pages S3772-S3773]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6575. Mr. BANKS (for himself and Ms. Warren) 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) 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.
``(2) 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.
``(3) Country of concern.--The term `country of concern'
means any foreign country listed in Country Group D:5 under
Supplement No. 1 to part 740 of the Export Administration
Regulations.
``(4) 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); or
``(ii) an integrated circuit 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.--Beginning
18 months after the date of the enactment of this section,
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
through 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 the addition or modification; and
``(II) in consultation with each agency that is part of the
Operating Committee for Export Policy, submits the addition
or modification 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.
``(5) 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)).
``(6) 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).
``(7) Restricted integrated circuit.--
``(A) In general.--Subject to subparagraphs (B), (C), and
(D), the term `restricted integrated circuit' means a covered
integrated circuit that has 1 or more digital processing
units with a total processing performance of 21,000 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
(4)(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.
``(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.--Not fewer than 15 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--
``(1) the quantity of the covered integrated circuit,
identified by an Export Control Classification Number, as
applicable, and by
[[Page S3773]]
technical parameters of the covered integrated circuit;
``(2) the ultimate consignee or end-user of the covered
integrated circuit;
``(3) the quantity of the covered integrated circuit that
has been shipped to end-users in the United States at the
time of the license application; and
``(4) any and all license conditions, which shall include a
certification that--
``(A) there is sufficient supply of the covered integrated
circuit in the United States such that export of the covered
integrated circuit authorized by the license would not result
in any delay in fulfilling any existing or new orders of
covered integrated circuits from customers in the United
States for end use in the United States (taking into account
normal lead times);
``(B) global foundry capacity that would otherwise be used
to produce similar node or more covered integrated circuits
for end users in the United States will not be diverted to
produce the commodities authorized by the license for exports
to the People's Republic of China;
``(C) the aggregate shipments of the covered integrated
circuit to the People's Republic of China and Macau will be
not more than 50 percent of the total covered integrated
circuits shipped to customers for end use in the United
States of that covered integrated circuit;
``(D) the transaction is not prohibited by end user, use
controls, or controls for nonmilitary end uses or end users;
``(E) the license applicant will employ rigorous know your
customer (KYC) procedures to screen and prevent unauthorized
remote access to unauthorized parties (such as prohibited
parties under part 744 of title 15, Code of Federal
Regulations, or successor regulations);
``(F) prior to export from the United States, every
shipment of covered integrated circuits will be reviewed by a
qualified third-party testing lab to confirm the technical
capabilities and functions of the artificial intelligence
commodities in the license application of the exporter; and
``(G) the license application has provided the Under
Secretary of Commerce for Industry and Security a list of
remote end users located in Belarus, China, Cuba, Iran,
Macau, North Korea, Russia, and Venezuela, or whose ultimate
parent company is headquartered in any such country.
``(d) 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--
``(1) a whole-of-government framework to win the artificial
intelligence race;
``(2) 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; and
``(3) 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
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.
``(e) 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.''.
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