S.Amdt. 6585

SA 6585. Mr. RICKETTS (for himself and Mr. Kim) 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 G of title X, add the following:

SEC. 1094. MULTILATERAL ALIGNMENT OF CONTROLS ON
SEMICONDUCTOR MANUFACTURING EQUIPMENT.

(a) Identifying Chokepoints.--Not later than 60 days after
the date of the enactment of this Act, and annually
thereafter, the Under Secretary of Commerce for Industry and
Security, in coordination with the Secretary of State,
shall--
(1) conduct a review to identify all covered semiconductor
manufacturing equipment and all covered facilities;
(2) submit to the appropriate congressional committees a
list of all such equipment and facilities; and
(3) notify the public in the Federal Register when this
submission has occurred.
(b) Diplomatic Engagement.--
(1) In general.--The Under Secretary of Commerce for
Industry and Security and the Secretary of State should
continue to prioritize and encourage the governments of
allied supplier countries to adopt--
(A) countrywide controls, or other policies that have the
same practical effect as countrywide controls, on covered
semiconductor manufacturing equipment that are subject to the
jurisdiction of such allied supplier country; and
(B) license requirements, with a policy of presumption of
denial, for the export, reexport, or in-country transfer of
all applicable items to any covered facility and for the
servicing of all applicable items at any covered facility.
(2) Briefing on diplomatic efforts.--Not later than 90 days
after the date of the enactment of this Act, the Under
Secretary of Commerce for Industry and Security and the
Secretary of State shall jointly provide to members of the
appropriate congressional committees a briefing to describe
the status of diplomatic efforts to align the controls on
covered semiconductor manufacturing equipment imposed by
allied supplier countries with the controls imposed by the
United States.
(3) Certification on allied supplier countries.--Except as
provided in subsection (c)(3), for each allied supplier
country, the Under Secretary of Commerce for Industry and
Security and the Secretary of State shall jointly certify,
not later than 150 days after the date of the enactment of
this Act, to the appropriate congressional committees that
either--
(A) the country has implemented the controls described in
subparagraphs (A) and (B) of paragraph (1); or
(B)(i) the country has not adopted the controls described
in subparagraph (A) or (B) of paragraph (1);
(ii) the Under Secretary of Commerce for Industry and
Security and the Secretary of State have prioritized and
exhausted available diplomatic channels; and
(iii) continued delay would materially undermine the
national security of the United States.
(c) Controls on United States Equipment and Extension of
Controls.--
(1) Application of controls on united states equipment.--
Not later than 150 days after the date of the enactment of
this Act, and annually thereafter, the Under Secretary of
Commerce for Industry and Security shall issue regulations
that--
(A) update United States countrywide controls to covered
semiconductor manufacturing equipment produced in the United
States; and
(B) update comprehensive United States end-user or end-use
restrictions to all covered facilities located in a country
of concern.
(2) Extension of controls to allied supplier countries.--
(A) In general.--Except as provided in subparagraph (B),
for any allied supplier country for which a certification is
submitted under subsection (b)(3)(B), the Under Secretary of
Commerce for Industry and Security shall issue regulations,
not later than the date of the submission of such
certification, that--
(i) establish United States jurisdiction over covered
semiconductor manufacturing equipment and applicable items
exported, reexported, or in-country transferred from, or
produced in, such country; and
(ii) apply--

(I) countrywide controls to all covered semiconductor
manufacturing equipment produced in such country;
(II) a license requirement, subject to a presumption of
denial, for the servicing of any applicable item located in a
covered facility; and
(III) end-user and end-use controls prohibiting the export,
reexport, or in-country transfer of an applicable item to any
covered facility.

(B) Deferral for anticipated alignment.--If, on or before
the deadline described in subparagraph (A), the Under
Secretary of Commerce for Industry and Security and the
Secretary of State jointly submit to the appropriate
congressional committees a report certifying that the allied
supplier country subject to subparagraph (A) has committed to
adopt, or is otherwise expected to adopt, controls that have
the same practical effect as those described in subsection
(b)(1), the Under Secretary of Commerce for Industry and
Security may issue a one-time deferral of the effective date
of the regulations described in subsection (A) for a period
of not longer than 30 days from the date described in
subparagraph (A).
(3) National security waiver.--The Under Secretary of
Commerce for Industry and Security and the Secretary of State
may jointly grant a one-time waiver to extend the 150-day
deadline for the issuing of controls pursuant to paragraph
(1) or paragraph (2) by not more than 90 days, if the Under
Secretary of Commerce for Industry and Security and the
Secretary of State jointly--
(A) submit a report to the appropriate congressional
committees describing--
(i) the justification for why the deadline could not be
met; and
(ii) the interim steps taken to prevent stockpiling; and
(B) determine and certify to the appropriate congressional
committees that--
(i) the extension is in the national security interest of
the United States; and
(ii) if applicable, the government of the allied supplier
country is taking concrete, verifiable steps, pursuant to
their domestic laws and regulations and as expeditiously as
possible, to adopt controls that have the same practical
effect as, or are more stringent than, the controls that
would otherwise be imposed under paragraph (2).
(d) Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the Under
Secretary of Commerce for Industry and Security and the
Secretary of State shall jointly submit to the appropriate
congressional committees a report that includes--
(A) the scope of the export controls imposed by the United
States and allied supplier countries on any covered
semiconductor manufacturing equipment identified in the most
recent list submitted under subsection (a);
(B) a summary of diplomatic engagements and unilateral
actions undertaken by the Secretaries in the one-year period
prior to the submission of the report to close any gap in
countrywide controls imposed by allied supplier countries for
covered semiconductor manufacturing equipment; and
(C) a certification that the export, reexport, or in-
country transfer of any covered semiconductor manufacturing
equipment to a country of concern, the export of any
applicable items to any covered facility, and the servicing
of any such item located in a country of concern is
prohibited or requires a license issued by the United States
or an allied supplier country, subject to a presumption of
denial.
(2) Form.--Each report submitted under paragraph (1) shall
be submitted in unclassified form but may include a
classified annex.
(e) Nonpublication of Confidential Certifications and
Reports.--
(1) In general.--The Under Secretary of Commerce for
Industry and Security and the Secretary of State, as
applicable, may elect to submit to the appropriate
congressional committees any certification and report
described in subsection (a), (c), or (d) in a confidential
manner.
(2) Committee safeguards.--The appropriate congressional
committees shall take such steps as may be necessary to
ensure that any certification or report submitted in a
confidential manner is not made publicly available.
(f) Compliance Assistance With Extension of Controls.--
Simultaneously with the issuing regulations under subsection
(c)(2), the Under Secretary of Commerce for Industry and
Security may provide to the principal executive officers of
any company that produces covered semiconductor manufacturing
equipment in the allied supplier country targeted in such
regulations a letter describing the regulations and the legal
obligations imposed by the regulations, including

[[Page S3783]]

any penalty that may be imposed under section 1760 of the
Export Control Reform Act of 2018 ( 50 U.S.C. 4819) for a
violation of such regulations.
(g) Termination and Reimposition of Controls Upon Allied
Action.--
(1) Termination or modification.--The Under Secretary of
Commerce for Industry and Security may terminate or modify
any regulation issued under subsection (c)(2), if the country
has established controls, including licensing policies, that
have the same practical effect as the regulation to be
terminated or modified.
(2) Reimposition.--If, after terminating or modifying a
control under paragraph (1), the Under Secretary of Commerce
for Industry and Security determines that the allied supplier
country has materially weakened, suspended, or revoked the
control that justified the termination or modification under
paragraph (1), the Under Secretary shall, not later than 60
days after making such determination--
(A) notify the appropriate congressional committees of such
determination; and
(B) reimpose the control under subsection (c)(2) that was
terminated or modified under paragraph (1).
(h) Administrative Procedures.--The provisions of section
1762 of the Export Control Reform Act of 2018 (50 U.S.C.
4821) shall apply to this section in the same manner and to
the same extent as such provisions apply to the Export
Control Reform Act of 2018 (50 U.S.C. 4801 et seq.).
(i) Definitions.--In this section:
(1) The term ``advanced-node integrated circuits'' has the
meaning given that term in section 772.1 of the Export
Administration Regulations as in effect on January 1, 2026.
(2) The term ``allied supplier country'' means any country
that--
(A) is not a country of concern; and
(B) is engaged in the production of covered semiconductor
manufacturing equipment.
(3) The term ``applicable item'' means any item that is or
can be made subject to the Export Administration Regulations,
including--
(A) a United States-origin item;
(B) a foreign-produced item that is the direct product of,
or produced by plants or major components that are the direct
product of, United States-origin software or technology
subject to the Export Administration Regulations;
(C) a foreign-produced item with more than zero percent de
minimis United States-origin content; and
(D) a foreign-produced item that contains United States-
origin or foreign-produced integrated circuits that are
presumptively designed or produced, directly or indirectly,
with technology, software, or equipment that is subject to
the Export Administration Regulations.
(4) The term ``appropriate congressional committees''
means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate; and
(B) the Committee on Foreign Affairs of the House of
Representatives.
(5) The term ``capabilities comparable to those of the
product sold by the global market leader'' means, considering
cost, throughput, reliability, precision, and any other
relevant factors, advanced-node integrated circuit makers
headquartered outside of countries of concern, when selecting
a tool for use in high-volume manufacturing, would be
indifferent about using, or would prefer to use, the tool
produced by the country of concern, rather than a tool sold
by the company with the greatest share of the global market
for tools used to accomplish the same function.
(6) The term ``country of concern'' has the meaning given
the term ``covered nation'' in section 4872(f) of title 10,
United States Code.
(7) The term ``countrywide controls'' means, with respect
to semiconductor manufacturing equipment, a licensing
requirements, with a policy of presumption of denial, for the
export, reexport, or in-country transfer of the item to or in
a country of concern, and a licensing requirement, with a
policy of presumption of denial, for the servicing of the
item located in a country of concern, excluding exports,
reexports, in-country transfers or servicing where the
destination is a fabrication facility that existed as of the
date of the enactment of this Act and remains owned and
operated by a company headquartered, and the ultimate parent
company of which is headquartered, outside of any country of
concern.
(8) The term ``covered facility'' means--
(A) a facility engaged in the production of advanced-node
integrated circuits which is owned or operated by an entity
headquartered in, or whose ultimate parent company is
headquartered in, a country of concern; or
(B) any facility owned or operated by, or in common
ownership or control with--
(i) Semiconductor Manufacturing International Corporation;
(ii) Hua Hong Semiconductor Limited;
(iii) Huawei Technologies Company;
(iv) ChangXin Memory Technologies;
(v) Yangtze Memory Technologies Corporation;
(vi) any producer, manufacturer, or developer of
semiconductor manufacturing equipment that is headquartered
in, or the ultimate parent company of which is headquartered
in, a country of concern; or
(vii) any entity that is a subsidiary or affiliate of or a
successor to any entity described in clauses (i) through
(vi).
(9) The term ``covered semiconductor manufacturing
equipment''--
(A) means semiconductor manufacturing equipment or a
component therefor that--
(i) is an applicable item; and
(ii) the Under Secretary of Commerce for Industry and
Security and the Secretary of State jointly determine that no
country of concern produces in sufficient volumes and with
capabilities comparable to those of the product sold by the
global market leader, as of the date of the enactment of this
Act; and
(B) includes, at a minimum--
(i) all deep ultraviolet immersion photolithography
machines, through silicon via deposition and etch tools,
cryogenic etch equipment, and cobalt deposition equipment;
and
(ii) all semiconductor manufacturing equipment or
components specified in Export Control Classification Number
3B001 or 3B002, or equipment meeting the parameters of Export
Control Classification Number 3B993.f.1 (excluding the
parameters described in 3B993.F.1.b2), as in effect on
January 1, 2026, except any item the Under Secretary of
Commerce for Industry and Security and the Secretary of State
jointly determine does not meet the requirements of
subparagraph (A).
(10) The terms ``export'', ``in-country transfer'',
``reexport'', and ``Export Administration Regulations'' have
the meanings given such terms in section 1742 of the Export
Control Reform Act of 2018 (50 U.S.C. 4801).
(11) The term ``in sufficient volumes'' means in volumes
sufficient to meet 75 percent of current demand from all
countries of concern.
(12) The term ``servicing'' means any servicing of
equipment or components, whether in-person or remote,
including installation, calibration, repair, overhauling,
refurbishing, testing, diagnosing, updating software or
firmware, training, field services, application support
engineering, customization, technical assistance, process
adjustments, troubleshooting, and transfer of industry best
practices for maintenance.
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