Sec. 1823. Funding for development and adoption of secure semiconductor and secure semiconductor supply chains
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There is established in the Treasury of the United States a trust fund, to be known as the Multilateral Semiconductor Security Fund (in this section referred to as the Fund ), consisting of any appropriated funds credited to the Fund. The purpose of the Fund shall be to work with and support a variety of stakeholders, including governments, businesses, academia, and civil society, and allies or partner nations who are members of the Fund and are critical to the global semiconductor supply chain in order to build safe and secure semiconductor supply chains outside of and devoid of entities from countries subject to a United States embargo.
Considerations for building safe and secure semiconductor supply chains include, but are not limited to— relevant semiconductor designs; chemicals and materials relevant to the semiconductor industry; semiconductor design tools; semiconductor manufacturing equipment; and basic and applied semiconductor research capability. Amounts in the Fund shall be available to the Secretary of State, subject to appropriation, on and after the date on which the Secretary enters into an agreement with at least 5 other governments of countries that are allies or partners of the United States that are critical to the global semiconductor supply chain to participate in the common funding mechanism under subsection (b)(1) and the commitments described in paragraph
(2)of that subsection. At no point during fiscal years 2021 through 2030 shall a United States contribution cause the cumulative total of United States contributions to exceed 33 percent of the total contributions to the Fund from all sources. The Secretary of State shall notify the appropriate congressional committees not later than 15 days in advance of making a contribution to the Fund, including— the amount of the proposed contribution; the total of funds contributed by other donors; and the national interests served by United States participation in the Fund. If at any time the Secretary of State determines that the Fund has provided assistance to a country, the government of which the Secretary of State has determined, for purposes of section 620A of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2371 ) has repeatedly provided support for acts of international terrorism, the United States shall immediately withhold contributions to the Fund and cease participating in Fund activities. If at any time the Secretary of State determines that the Fund, or any investments made by the fund, has supported the semiconductor supply chain of or an entity with a substantial nexus to the semiconductor supply chain of a country under a United States embargo, the United States shall immediately withhold contributions and no longer make any contributions until it certifies that non-market economies do not stand to benefit from investments made from the Fund. If at any time during any of the fiscal years 2021 through 2025, the Secretary of State determines that the salary of any individual employed by the Fund exceeds the salary of the Vice President of the United States for that fiscal year, then the United States should withhold from its contribution for the next fiscal year an amount equal to the aggregate amount by which the salary of each such individual exceeds the salary of the Vice President of the United States. If at any time the Secretary of State certifies that the United States does not have a permanent representative to the Board of Trustees as established in paragraph (6), the Secretary shall withhold contributions to the Fund until the Secretary certifies that the United States is given a permanent seat. The Fund should be governed by a Board of Trustees, to be composed of representatives of participating allies and partners that are donors or participants in the Fund. The Board of Trustees should include— 5 permanent member countries, who qualify based upon meeting an established initial contribution threshold, whose contributions should cumulatively be not less than 50 percent of total contributions, and who should hold veto power over programs and projects; and 5 term members, as appropriate, who are selected by the permanent members on the basis of their commitment to building a free secure semiconductor supply chain. Individuals appointed to the Board shall have demonstrated knowledge and experience in the fields of semiconductors, semiconductor manufacturing, and supply chain management. The Secretary of State shall seek to establish the United States as a founding permanent member of the Fund. The Secretary of State shall appoint an individual qualified as according to subparagraph
(B)of this subsection to represent the United States on the Board of Trustees. This paragraph shall take effect upon the date the Secretary of State, in coordination with the Secretary of the Treasury, certifies and transmits to Congress an agreement establishing the Fund. The membership established pursuant to clause
(i)shall terminate upon the date of termination of the Fund. The Fund shall establish procedures for the removal of member donors of the Board who do not abide by the Fund’s core objectives as defined in paragraph
(4)of this section. Amounts in the Fund shall remain available through the end of the 10th fiscal year beginning after the date of the enactment of this Act. 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. The Secretary of State, in consultation with the Secretary of Commerce, Secretary of Energy, 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 Members of the Fund, that uses amounts from the Fund, and amounts committed by such governments, to support those efforts described in subsection (a). The Secretary of State, in consultation with the United States Trade Representative, the Secretary of Treasury, and the Secretary of Commerce, shall seek to negotiate a set of mutual commitments with the governments of countries that are Members of the Fund upon which to condition any expenditure of funds pursuant to the common funding mechanism described in paragraph (1). Such commitments shall, at a minimum— develop common policies for the protection of basic and applied research in both academic and commercial settings; develop common reporting requirements for researchers participating in talents programs of countries subject to a United States arms embargo; establish substantially similar if not identical export controls licensing requirements for all segments of the semiconductor supply chain; establish substantially similar if not identical policies for inbound investment from entities with a substantial nexus to countries subject to an embargo in all segments of the semiconductor supply chain; establish harmonized treatment of semiconductors and verification processes for the importation of semiconductors or items incorporating semiconductors from embargoed countries; establish common policies on protecting knowledge, know-how, and personnel from migrating to embargoed countries or taking employment with entities with a substantial nexus to these countries; develop common policies, including disclosure requirements and restrictions, on outbound investments, including index funds, into entities that support or contribute to the development of the semiconductor industry in countries subject to an embargo; establish transparency requirements for any subsidies or other financial benefits (including revenue foregone) provided to semiconductor firms located in or outside such countries; establish consistent policies with respect to countries that— are not participating in the common funding mechanism; and do not meet transparency requirements established under subparagraph (H); promote harmonized treatment of semiconductor and verification processes for items being exported to a country considered a national security risk by a country participating in the common funding mechanism; establish a consistent policies and common external policies to address nonmarket economies as the behavior of such countries pertains to semiconductor; and align policies on supply chain integrity and semiconductor security. Not later than 1 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), the Secretary of State shall submit to Congress a report on the status of the implementation of this section that includes a description of— 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; the criteria established for expenditure of funds through the common funding mechanism; how, and to whom, amounts have been expended from the Fund; amounts remaining in the Fund; 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 any additional authorities needed to enhance the effectiveness of the Fund in achieving the security goals of the United States. Not later than 2 years after the date that the Fund is formally established, the Comptroller General of the United States shall submit to the appropriate congressional committees a report evaluating the effectiveness of the Fund, including— the effectiveness of the programs, projects, and activities supported by the Fund; and an assessment of the merits of continued United States participation in the Fund.
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Sec. 1823
Funding for development and adoption of secure semiconductor and secure semiconductor supply chains
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