S.Amdt. 6462

1. Adds SEC. 875. PROHIBITION ON CERTAIN SEMICONDUCTOR PRODUCTS AND SERVICES at the end of subtitle E of title VIII

   Adds a section

   In S.Amdt. 5499 as proposed

   (c) Required Completion.--The Secretary shall ensure that the updates required by subsection (a) are completed before January 1, 2029.

   Inserted: SEC. 875. PROHIBITION ON CERTAIN SEMICONDUCTOR PRODUCTS AND SERVICES.

   Inserted: (a) In General.--Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232; 41 U.S.C. 3901 note prec.) is amended--

   Inserted: (1) in the section heading, by inserting "and semiconductor products and services" after "services or equipment";

   Inserted: (2) in subsection (a)(1), by inserting ", or covered semiconductor products or services," after "equipment or services" both places it appears;

   Inserted: (3) in subsection (d), by adding at the end the following new paragraph:

   Inserted: "(3) Secretary of defense.--The Secretary of Defense may provide a waiver on a date later than the effective dates described in subsection (c) if the Secretary determines the waiver is in the national security interests of the United States."; and

   Inserted: (4) in subsection (f)--

   Inserted: (A) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively;

   Inserted: (B) by inserting after paragraph (2) the following new paragraph:

   Inserted: "(3) Covered semiconductor product or services.--The term 'covered semiconductor product or services' means any of the following:

   Inserted: "(A) A product that incorporates a semiconductor product designed or produced by, or any service provided by, Semiconductor Manufacturing International Corporation (SMIC), ChangXin Memory Technologies (CXMT), or Yangtze Memory Technologies Corp. (YMTC) (or any subsidiary, affiliate, or successor of such entities).

   Inserted: "(B) Semiconductor products or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.".

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   Inserted: (b) Effective Date and Applicability.--The amendments made by subsection (a) shall take effect three years after the date of the enactment of this Act.

   Inserted: (c) Office of Management and Budget Report and Briefing.--Not later than 270 days after the effective date described in subsection (b)(2), the Director of the Office of Management and Budget, in coordination with the Director of National Intelligence and the National Cyber Director, shall provide to the Majority Leader and Minority Leader of the Senate, the Speaker of the House of Representatives, the Minority leader of the House of Representatives, and the appropriate congressional committees (as defined in section 889(f) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232; 41 U.S.C. 3901 note prec.)) a report and briefing on--

   Inserted: (1) the implementation of the amendments made by subsection (a), including any challenges in the implementation; and

   Inserted: (2) the effectiveness and utility of the waiver authority under subsection (d) of such section 889.

   Original wording

   At the end of subtitle E of title VIII, add the following:

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As printed