S.Amdt. 575

SA 575. Mr. KELLY submitted an amendment intended to be proposed by
him to the bill S. 2226, to authorize appropriations for fiscal year
2024 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 G of title X, add the following:

SEC. 1083. SEMICONDUCTOR SUPPLY CHAIN.

(a) Short Title.--This section may be cited as the
``Semiconductor Supply Chain Protection Act of 2023''.
(b) Definitions.--Section 9901 of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (15 U.S.C. 4651) is amended by adding at the end the
following:
``(14) The term `ineligible equipment'--
``(A) means completed, fully assembled semiconductor
manufacturing equipment manufactured or assembled by a
foreign entity of concern or a subsidiary of a foreign entity
of concern; and
``(B) includes--
``(i) deposition equipment;
``(ii) etching equipment;
``(iii) lithography equipment;
``(iv) inspection and measuring equipment;
``(v) wafer slicing equipment;
``(vi) water dicing equipment;
``(vii) wire bonders;
``(viii) ion implantation equipment; and
``(ix) diffusion/oxidation furnaces.''.
(c) Ineligible Use of Funds.--Section 9902(a) of the
William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4652(a)) is amended by
adding at the end the following:
``(7) Ineligible use of funds.--
``(A) In general.--Subject to subparagraph (B), a covered
entity that receives financial assistance under this section
may not use any portion of such financial assistance to
purchase ineligible equipment.
``(B) Waiver.--The Secretary may waive the requirement
under subparagraph (A) if--
``(i) the ineligible equipment to be purchased by the
applicable covered entity is not produced in the United
States in sufficient and reasonably available quantities or
of a satisfactory quality to support established production
capabilities; or
``(ii) the Secretary, in consultation with the Director of
the National Security Agency and the Secretary of Defense,
determines that the purchase of ineligible equipment by the
applicable covered entity is in the national security
interest of the United States.''.
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