S.Amdt. 2101

SA 2101. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill S. 4049, to authorize appropriations for fiscal year
2021 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 title X, add the following:

Subtitle H--Semiconductor Manufacturing Incentives

SEC. 1091. FEDERAL MATCHING FUNDS TO STATE INCENTIVES.

(a) Definitions.--In this section--
(1) the term ``appropriate committees of Congress'' means--
(A) the Select Committee on Intelligence, the Committee on
Commerce, Science, and Transportation, the Committee on
Foreign Relations, the Committee on Armed Services, and the
Committee on Homeland Security and Governmental Affairs of
the Senate; and
(B) the Permanent Select Committee on Intelligence, the
Committee on Energy and Commerce, the Committee on Foreign
Affairs, the Committee on Armed Services, the Committee on
Science, Space, and Technology, and the Committee on Homeland
Security of the House of Representatives;
(2) the term ``covered entity'' means a private entity to
which a governmental entity has offered a covered incentive;
(3) the term ``covered incentive''--
(A) means an incentive offered by a governmental entity to
a private entity for the purposes of building within the
jurisdiction of the governmental entity, or expanding an
existing facility within that jurisdiction--
(i) a fabrication (or other essential) facility relating to
the manufacturing of current or next generation
semiconductors; or
(ii) any other facility that enables the manufacturing of
current or next generation semiconductors or the assembly,
testing, and packaging of current or next generation
semiconductors; and
(B) includes any tax incentive (such as an incentive or
reduction with respect to employment or payroll taxes or a
tax abatement with respect to personal or real property), a
workforce-related incentive (including a grant agreement
relating to workforce training or vocational education), any
concession with respect to real property, and any other
incentive determined appropriate by the Secretary, in
consultation with the Secretary of State;
(4) the term ``governmental entity'' means a State or local
government; and
(5) the term ``Secretary'' means the Secretary of Commerce.
(b) Matching Funds.--
(1) In general.--The Secretary shall establish in the
Department of Commerce a program that, in accordance with the
requirements of this section, provides matching funds to
covered entities.
(2) Procedure.--
(A) In general.--A covered entity that has been offered a
covered incentive and that desires to receive matching funds
under this subsection shall submit to the Secretary an
application that describes the project to which that covered
incentive relates.
(B) Considerations for review.--With respect to the review
by the Secretary of an application submitted by a covered
entity under subparagraph (A)--
(i) the Secretary may not approve the application unless
the Secretary--

(I) confirms that the covered entity has agreed to build or
expand in the applicable jurisdiction a facility described in
subsection (a)(3)(A); and
(II) determines that building or expanding the facility
described in subclause (I) is in the interest of the United
States; and

(ii) the Secretary may consider whether--

(I) the covered entity has previously received a grant made
under this subsection; and
(II) the applicable governmental entity has benefitted from
a grant previously made under this subsection.
(III) the entity is located in a state with a per capita
income that is equal to or below the national average.

(3) Priority.--In carrying out this subsection, the
Secretary shall, to the maximum extent practicable, ensure
that the Secretary approves not less than 1 application with
respect to building or expanding a facility that enables the
assembly, testing, and packaging of current or next
generation semiconductors.
(4) Amount.--The amount of matching funds provided by the
Secretary to a covered entity under this subsection shall be
in an amount that is not less than the value of the
applicable covered incentive offered to the covered entity,
as determined by the Secretary.
(5) Clawback.--The Secretary shall recover the full amount
of matching funds provided to a covered entity under this
subsection if--
(A) as of the date that is 5 years after the date on which
the Secretary provides the funds, the applicable project to
which the applicable covered incentive relates has not been
completed, except that the Secretary may issue a waiver with
respect to the requirement under this subparagraph if the
Secretary determines that issuing such a waiver is
appropriate and in the interests of the United States; or
(B) during the applicable term with respect to those funds,
the covered entity engages in any joint research or
technology licensing effort--
(i) with the Government of the People's Republic of China,
the Government of the Russian Federation, the Government of
Iran, or the Government of North Korea; and
(ii) that relates to a sensitive technology or product, as
determined by the Secretary.
(c) Consultation and Coordination Required.--In carrying
out the program established under subsection (b), the
Secretary shall consult and coordinate with the Secretary of
State.
(d) GAO Reviews.--The Comptroller General of the United
States shall--
(1) not later than 2 years after the date of enactment of
this Act, and biennially thereafter until the date that is 10
years after that date of enactment, conduct a review of the
program established under subsection (b), which shall include
a determination of the number of instances in which matching
funds were provided under that subsection during the period
covered by the review in violation of a requirement under
this section; and
(2) submit to the appropriate committees of Congress the
results of each review conducted under paragraph (1).
(e) Direct Appropriation.--
(1) In general.--There is appropriated to the Secretary,
out of any money in the Treasury not otherwise appropriated,
$10,000,000,000 to carry out this section, to remain
available until expended.
(2) Emergency requirement.--The amount provided by
paragraph (1) is designated by the Congress as being for an
emergency requirement pursuant to section 251(b)(2)(A)(i) of
the Balanced Budget and Emergency Deficit Control Act of
1985.

SEC. 1092. DEPARTMENT OF DEFENSE SUPPORT FOR SEMICONDUCTOR
TECHNOLOGIES AND RELATED TECHNOLOGIES.

(a) RDT&E Efforts.--
(1) In general.--The Secretary of Defense shall, in
consultation with the Secretary of Commerce, and the
Secretary of Homeland Security work with the private sector
through a public-private partnership to incentivize the
formation of a consortium of United States companies to
ensure the development and production of advanced, measurably
secure microelectronics for use by the Department of Defense,
the intelligence community, critical infrastructure sectors,
and other national security applications. The consortium so
formed must be capable of producing microelectronics
consistent with security standards required by section 224 of
the National Defense Authorization Act for Fiscal Year 2020
(Public Law 116-92).
(2) Discharge.--The Secretary of Defense shall carry out
paragraph (1) jointly through the Office of the Under
Secretary of Defense for Research and Engineering and the
Office of the Under Secretary of Defense for Acquisition and
Sustainment, or such other component of the Department of
Defense as the Secretary considers appropriate.
(3) Other initiatives.--The Secretary of Defense shall
dedicate initiatives within the Department of Defense to
advance radio frequency, mixed signal, radiation tolerant,
and radiation hardened microelectronics that support national
security and dual-use applications.
(b) DPA Efforts.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the President shall submit to
Congress a report on, and shall commence implementation of, a
plan for use by the Department of Defense of authorities
available in title III of the Defense Production Act of 1950
(50 U.S.C.

[[Page S3532]]

4531 et seq.) to establish and enhance a domestic production
capability for semiconductor technologies and related
technologies, if funding is available for that purpose.
(2) Consultation.--The President shall develop the plan
required by paragraph (1) in consultation with the Secretary
of Defense, the Secretary of State, the Secretary of
Commerce, and appropriate stakeholders in the private sector.

SEC. 1093. DEPARTMENT OF COMMERCE STUDY ON STATUS OF
SEMICONDUCTOR TECHNOLOGIES IN THE UNITED STATES
INDUSTRIAL BASE.

(a) In General.--Commencing not later than 120 days after
the date of the enactment of this Act, the Secretary of
Commerce and the Secretary of Homeland Security shall
undertake a survey, using authorities in section 705 of the
Defense Production Act (50 U.S.C. 4555), to assess the
capabilities of the United States industrial base to support
the national defense in light of the global nature of the
supply chain and significant interdependencies between the
United States industrial base and the industrial base of
foreign countries with respect to the manufacture, design,
and end use of semiconductors.
(b) Response to Survey.--The Secretary shall ensure
compliance with the survey from among all relevant potential
respondents, including the following:
(1) Corporations, partnerships, associations, or any other
organized groups domiciled and with substantial operations in
the United States.
(2) Corporations, partnerships, associations, or any other
organized groups domiciled in the United States with
operations outside the United States.
(3) Foreign domiciled corporations, partnerships,
associations, or any other organized groups with substantial
operations or business presence in, or substantial revenues
derived from, the United States.
(4) Foreign domiciled corporations, partnerships,
associations, or any other organized groups in defense treaty
or assistance countries where the production of the entity
concerned involves critical technologies covered by section
2.
(c) Information Requested.--The information sought from a
responding entity pursuant to the survey required by
subsection (a) shall include, at minimum, information on the
following with respect to the manufacture. design, or end use
of semiconductors by such entity:
(1) An identification of the geographic scope of
operations.
(2) Information on relevant cost structures.
(3) An identification of types of semiconductor
development, manufacture, assembly, test, and packaging
equipment in operation at such entity.
(4) An identification of all relevant raw materials and
semi-finished goods and components sourced domestically and
abroad by such entity.
(5) Specifications of the semiconductors manufactured or
designed by such entity, descriptions of the end-uses of such
semiconductors, and a description of any technical support
provided to end-users of such semiconductors by such entity.
(6) Information on domestic and export market sales by such
entity.
(7) Information on the financial performance, including
income and expenditures, of such entity.
(8) A list of all foreign and domestic subsidies, and any
other financial incentives, received by such entity in each
market in which such entity operates.
(9) A list of information requests from the People's
Republic of China to such entity, and a description of the
nature of each request and the type of information provided.
(10) Information on any joint ventures, technology
licensing agreements, and cooperative research or production
arrangements of such entity.
(11) A description of efforts by such entity to evaluate
and control supply chain risks it faces.
(12) A list and description of any sales, licensing
agreements, or partnerships between such entity and the
People's Liberation Army or People's Armed Police, including
any business relationships with entities through which such
sales, licensing agreements, or partnerships may occur.
(d) Report.--
(1) In general.--The Secretary of Commerce shall, in
consultation with the Secretary of Defense, and the Secretary
of Homeland Security submit to Congress a report on the
results of the survey required by subsection (a). The report
shall include the following:
(A) An assessment of the results of the survey.
(B) A list of critical technology areas impacted by
potential disruptions in production of semiconductors, and a
detailed description and assessment of the impact of such
potential disruptions on such areas.
(C) A description and assessment of gaps and
vulnerabilities in the semiconductor supply chain and the
national industrial supply base.
(2) Form.-- The report required by paragraph (1) may be
submitted in classified form.

SEC. 1094. FUNDING FOR DEVELOPMENT AND ADOPTION OF SECURE
MICROELECTRONICS AND SECURE MICROELECTRONICS
SUPPLY CHAINS.

(a) Multilateral Microelectronics Security Fund.--
(1) Establishment of fund.--There is established in the
Treasury of the United States a trust fund, to be known as
the ``Multilateral Microelectronics Security Fund'' (in this
section referred to as the ``Fund''), consisting of amounts
deposited into the Trust Fund under paragraph (2) and any
amounts that may be credited to the Trust Fund under
paragraph (3).
(2) Authorization of appropriations.--There are authorized
to be appropriated $750,000,000 to be deposited in the Fund.
(3) Investment of amounts.--
(A) Investment of amounts.--The Secretary of the Treasury
shall invest such portion of the Fund as is not required to
meet current withdrawals in interest-bearing obligations of
the United States or in obligations guaranteed as to both
principal and interest by the United States.
(B) Interest and proceeds.--The interest on, and the
proceeds from the sale or redemption of, any obligations held
in the Fund shall be credited to and form a part of the Fund.
(4) Use of fund.--
(A) In general.--Subject to subparagraph (B), amounts in
the Fund shall be available, as provided in advance in an
appropriations Act, to the Secretary of State--
(i) to provide funding through the common funding mechanism
described in subsection (b)(1) to support the development and
adoption of secure microelectronics and secure
microelectronics supply chains; and
(ii) to otherwise carry out this section.
(B) Availability contingent on international agreement.--
Amounts in the Fund shall be available to the Secretary of
State on and after the date on which the Secretary enters
into an agreement with the governments of countries that are
partners of the United States to participate in the common
funding mechanism under paragraph (1) of subsection (b) and
the commitments described in paragraph (2) of that
subsection.
(5) Availability of amounts.--
(A) In general.--Amounts in the Fund shall remain available
through the end of the tenth fiscal year beginning after the
date of the enactment of this Act.
(B) Remainder to treasury.--Any amounts remaining in the
Fund after the end of the fiscal year described in
subparagraph (A) shall be deposited in the general fund of
the Treasury.
(b) Common Funding Mechanism for Development and Adoption
of Secure Microelectronics and Secure Microelectronics Supply
Chains.--
(1) In general.--The Secretary of State, in consultation
with the Secretary of Commerce, the Secretary of Defense, the
Secretary of Homeland Security, the Secretary of the
Treasury, and the Director of National Intelligence, shall
seek to establish a common funding mechanism, in coordination
with the governments of countries that are partners of the
United States, that uses amounts from the Fund, and amounts
committed by such governments, to support the development and
adoption of secure microelectronics and secure
microelectronics supply chains, including for use in research
and development collaborations among countries participating
in the common funding mechanism.
(2) Mutual commitments.--The Secretary of State, in
consultation with the United States Trade Representative and
the Secretary of Commerce, shall seek to negotiate a set of
mutual commitments with the governments of countries that are
partners of the United States upon which to condition any
expenditure of funds pursuant to the common funding mechanism
described in paragraph (1). Such commitments shall, at a
minimum--
(A) establish transparency requirements for any subsidies
or other financial benefits (including revenue foregone)
provided to microelectronics firms located in or outside such
countries;
(B) establish consistent policies with respect to countries
that--
(i) are not participating in the common funding mechanism;
and
(ii) do not meet transparency requirements established
under subparagraph (A);
(C) promote harmonized treatment of microelectronics and
verification processes for items being exported to a country
considered a national security risk by a country
participating in the common funding mechanism;
(D) establish a consistent policies and common external
policies to address nonmarket economies as the behavior of
such countries pertains to microelectronics; and
(E) align policies on supply chain integrity and
microelectronics security, including with respect to
protection and enforcement of intellectual property rights.
(c) Annual Report to Congress.--Not later than one year
after the date of the enactment of this Act, and annually
thereafter for each fiscal year during which amounts in the
Fund are available under subsection (a)(3), the Secretary of
State shall submit to Congress a report on the status of the
implementation of this section that includes a description
of--
(1) any commitments made by the governments of countries
that are partners of the United States to providing funding
for the common funding mechanism described in subsection
(b)(1) and the specific amount so committed;
(2) the criteria established for expenditure of funds
through the common funding mechanism;

[[Page S3533]]

(3) how, and to whom, amounts have been expended from the
Fund;
(4) amounts remaining in the Fund;
(5) the progress of the Secretary of State toward entering
into an agreement with the governments of countries that are
partners of the United States to participate in the common
funding mechanism and the commitments described in subsection
(b)(2); and
(6) any additional authorities needed to enhance the
effectiveness of the Fund in achieving the security goals of
the United States.

SEC. 1095. ADVANCED SEMICONDUCTOR RESEARCH AND DESIGN.

(a) Appropriate Committees of Congress.-- In this section,
the term ``appropriate committees of Congress'' means--
(1) the Committee on Intelligence, the Committee on
Commerce, Science, and Transportation, the Committee on
Foreign Relations, the Committee on Armed Services, and the
Committee on Homeland Security and Governmental Affairs of
the Senate; and
(2) the Permanent Select Committee on Intelligence, the
Committee on Energy and Commerce, the Committee on Foreign
Affairs, the Committee on Armed Services, the Committee on
Science, Space, and Technology, and the Committee on Homeland
Security of the House of Representatives.
(b) Sense of Congress.--It is the sense of Congress that
the leadership of the United States in semiconductor
technology and innovation is critical to the economic growth
and national security of the United States.
(c) Subcommittee on Semiconductor Leadership.--
(1) Establishment required.--The President shall establish
in the National Science and Technology Council a subcommittee
on matters relating to leadership of the United States in
semiconductor technology and innovation.
(2) Duties.--The duties of the subcommittee established
under paragraph (1) are as follows:
(A) National strategy on semiconductor research.--
(i) Development.--In coordination with the Secretary of
Defense, the Secretary of Energy, the Secretary of State, the
Secretary of Commerce, and the Secretary of Homeland Security
the National Science Foundation, and the Director of the
National Institute of Standards and Technology and in
consultation with the semiconductor industry and academia,
develop a national strategy on semiconductor research and
semiconductor security, including guidance for the funding of
research.
(ii) Reporting and updates.--Not less frequently than one
every 5 years, to update the strategy developed under clause
(i) and to submit the revised strategy to the appropriate
committees of Congress.
(iii) Implementation.--In coordination with the Secretary
of Defense, the Secretary of Energy, the Secretary of State,
the Secretary of Commerce, and the Secretary of Homeland
Security the National Science Foundation, and the Director of
the National Institute of Standards and Technology, on an
annual basis coordinate and recommend each agency's
semiconductor related research and development programs and
budgets to ensure consistency with the National Strategy on
Semiconductor Research.
(B) Fostering coordination of research and development.--To
foster the coordination of semiconductor research and
development.
(d) National Semiconductor Technology Center.--
(1) Establishment.--The Secretary of Commerce shall
established a national semiconductor technology center to
conduct research and prototyping of advanced semiconductor
technology to strengthen the economic competitiveness and
security of the domestic supply chain, which will be operated
as a public private-sector consortium with participation from
the private sector, the Department of Defense, the Department
of Energy, and the Secretary of Homeland Security the
National Science Foundation, and the National Institute of
Standards and Technology
(2) Functions.--The functions of the center established
under paragraph (1) shall be as follows:
(A) To conduct advanced semiconductor manufacturing, design
and prototyping research that strengthens the entire domestic
ecosystem and is aligned with the National Strategy on
Semiconductor Research.
(B) To establish an Advanced Packaging National
Manufacturing Program led by the National Institute of
Standards and Technology, in coordination with the Center, to
strengthen semiconductor advanced test, assembly, and
packaging capability in the domestic ecosystem, and which
shall coordinate with the Manufacturing USA institute
established under paragraph (3)(C).
(C) To establish an investment fund, in partnership with
the private sector, to support startups in the domestic
semiconductor ecosystem.
(D) To establish a Semiconductor Manufacturing Program
through the Director of the National Institute of Standards
and Technology to enable advances and breakthroughs in
measurement science, standards, material characterization,
instrumentation, testing, and manufacturing capabilities that
will accelerate the underlying research and development for
design, development, and manufacturability of next generation
microelectronics and ensure the competitiveness and
leadership of the United States within this sector.
(E) To work with the Secretary of Labor and the private
sector to develop workforce training programs and
apprenticeships in advanced microelectronic packaging
capabilities.
(3) Components.--The fund established under paragraph
(2)(D) shall cover the following:
(A) Advanced metrology and characterization for
manufacturing of microchips using 3 nanometer transistor
processes or more advanced processes.
(B) Metrology for security and supply chain verification.
(4) The fund established under (2)(D) may also cover
Creation of a Manufacturing USA institute described in
section 34(d) of the National Institute of Standards and
Technology Act (15 U.S.C. 278s(d)) that is focused on
semiconductor manufacturing. Such institute may emphasize the
following:
(A) Research to support the virtualization and automation
of maintenance of semiconductor machinery.
(B) Development of new advanced test, assembly and
packaging capabilities.
(C) Developing and deploying educational and skills
training curricula needed to support the support the industry
sector and ensure the U.S. can build and maintain a trusted
and predictable talent pipeline.
(e) Authorizations of Appropriations.--
(1) National semiconductor technology center.--
(A) In general.--There is authorized to be appropriated to
carry out subsection (d), $9,000,000,000 for fiscal year
2021, with such amount to remain available for such purpose
through fiscal year 2030--
(i) of which, $3,000,000,000 shall be available to carry
out subsection (d)(2)(A);
(ii) of which, $5,000,000,000 shall be available to carry
out subsection (d)(2)(B)
(iii) of which, $500,000,000 shall be available to carry
out subsection (d)(2)(C)
(iv) of which, $500,000,000 shall be available to carry out
subsection (d)(2)(D)--

(I) of which, $20,000,000 shall be available for each of
fiscal years 2021 through 2025 to carry out subsection
(d)(3)(A);
(II) of which, $20,000,000 shall be available for each of
fiscal years 2021 through 2025 to carry out subsection
(d)(3)(B); and
(III) of which, $50,000,000 shall be available for each of
fiscal years 2021 through 2025 to carry out subsection
(d)(4); and

(v) of which, $50,000,000 shall be available to carry out
subsection (d)(2)(E).
(B) Emergency.-- Amounts made available pursuant to
subparagraph (A) are designated by Congress as being for an
emergency requirement pursuant to section 251(b)(2)(A)(i) of
the Balanced Budget and Emergency Deficit Control Act of
1985.
(2) Semiconductor research at the defense advanced research
projects agency.--There is authorized to be appropriated to
carry out semiconductor research, such as the Electronics
Resurgence Initiative, at the Defense Advanced Research
Projects Agency, $2,000,000,000 for fiscal year 2021, with
such amount to remain available for such purpose through
fiscal year 2025. An amount made available pursuant to this
paragraph is designated by Congress as being for an emergency
requirement pursuant to section 251(b)(2)(A)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
(3) Semiconductor research at national science
foundation.--There is authorized to be appropriated to carry
out programs at the National Science Foundation on
semiconductor research in alignment with the National
Strategy on Semiconductor Research, $1,000,000,000 for fiscal
year 2021, with such amount to remain available for such
purpose through fiscal year 2025. An amount made available
pursuant to this paragraph is designated by Congress as being
for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit
Control Act of 1985.
(4) Semiconductor research at department of energy.--There
is authorized to be appropriated to carry out programs at the
Department of Energy on semiconductor research, in alignment
with the National Strategy on Semiconductor Research,
$2,000,000,000 for fiscal year 2021, with such amount to
remain available for such purpose through fiscal year 2025.
An amount made available pursuant to this paragraph is
designated by Congress as being for an emergency requirement
pursuant to section 251(b)(2)(A)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985.
______