Sec. 247. Microelectronics and national security
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Section 231 of the National Defense Authorization Act for Fiscal Year 2017 ( Public Law 114–328 ; 10 U.S.C. 2302 note) is amended— in subsection (a), by striking September 30, 2019 and inserting December 30, 2020 ; in subsection (b), by adding at the end the following new paragraphs: An approach to ensuring the continuing production of cutting-edge microelectronics for national security needs, including state-of-the-art node sizes, heterogeneous integration, advantaged sensor manufacturing, boutique chip designs, and variable volume production capabilities.
An assessment of current microelectronics supply chain management practices, existing risks, and actions that may be carried out to mitigate such risks by organizations in the defense industrial base. A plan for increasing commercialization of intellectual property developed by the Department of Defense for commercial microelectronics research and development. An assessment of the feasibility, usefulness, efficacy, and cost of— developing a national laboratory exclusively focused on the research and development of microelectronics to serve as a center for Federal Government expertise in high-performing, trusted microelectronics and as a hub for Federal Government research into breakthrough microelectronics-related technologies; and incorporating into such national laboratory a commercial incubator to provide early-stage microelectronics startups, which face difficulties scaling due to the high costs of microelectronics design and fabrication, with access to funding resources, fabrication facilities, design tools, and shared intellectual property.
Such other matters as the Secretary of Defense determines to be relevant. ; in subsection (d), by striking September 30, 2019 and inserting December 30, 2020 ; and in subsection (e), by striking September 30, 2019 and inserting December 30, 2020 . Not later than 30 days after the date of the enactment of this Act, the President, in consultation with the National Security Council, the National Economic Council, and the Office of Science and Technology Policy, shall establish an advisory panel on microelectronics leadership and competitiveness (referred to in this subsection as the Advisory Panel ).
The Advisory Panel shall be composed of the following members: The Secretary of Defense. The Secretary of Energy. The Director of the National Science Foundation. The Director of the National Institute of Standards and Technology. The heads of such other departments and agencies of the Federal Government as the President, in consultation with the National Security Council, determines appropriate. Not later than 180 days after the date on which the Advisory Panel is established, the Panel shall develop a national strategy to— accelerate the development and deployment of state-of-the-art microelectronics; and ensure that the United States is a global leader in the field of microelectronics.
The strategy developed under subparagraph
(A)shall address the following: Activities that may be carried out to strengthen engagement and outreach between the Department of Defense and industry, academia, international partners of the United States, and other departments and agencies of the Federal Government on issues relating to microelectronics. Science, technology, research, and development efforts to facilitate the advancement and adoption of microelectronics and new uses of microelectronics and components, including efforts to— accelerate leap-ahead research, development, and innovation in microelectronics; and deploy heterogeneously integrated microelectronics for machine learning and other applications. The role of diplomacy and trade in maintaining the position of the United States as a global leader in the field of microelectronics, including the feasibility and advisability of— implementing multilateral export controls tailored through direct coordination with key allies of the United States, including through the Wassenaar Arrangement and other multilateral fora, for specific semiconductor manufacturing equipment such as extreme ultraviolet photolithography equipment and argon fluoride immersion photolithography equipment; additional trade enforcement actions that may be initiated by the United States to address any unfair or excessive foreign semiconductor subsidy programs or other unfair microelectronics trade practices; and the elimination of any trade barriers or unilateral export controls that harm United States companies without producing a substantial benefit to the competitiveness or national security of the United States. The potential role of a national laboratory and incubator exclusively focused on the research and development of microelectronics, as described in section 231(b)(13) of the National Defense Authorization Act for Fiscal Year 2017 ( Public Law 114–328 ; 10 U.S.C. 2302 note) (as added by subsection (a)) in carrying out the strategy and plan required subparagraph (A). Such other activities as the Panel determines may be appropriate to overcome looming challenges to the innovation, competitiveness, and supply chain integrity of the United States in the area of microelectonics. Not later than 90 days after the date of the enactment of this Act— the Secretary of Defense shall provide to the congressional defense committees a briefing on the progress of the Secretary in developing the strategy and implementation plan required under section 231(a) of the National Defense Authorization Act for Fiscal Year 2017 ( Public Law 114–328 ; 10 U.S.C. 2302 note); and the Assistant to the President for National Security Affairs shall provide to the congressional defense committees a briefing on the progress of the Advisory Panel in developing the strategy required under subsection (b)(3). The Secretary of Defense shall, in consultation with the Secretary of Commerce, the Secretary of Homeland Security, and the Director of National Intelligence, work with the private sector through a public-private partnership, including by incentivizing the formation of a consortium of United States companies, to ensure the development and production of advanced, measurably secure microelectronics. Such work may include providing incentives for the creation, expansion, or modernization of one or more commercially competitive and sustainable semiconductors manufacturing or advanced research and development facilities. A participant in a consortium formed with incentives under paragraph
(1)shall— have the potential to perform fabrication, assembly, package, or test functions for semiconductors deemed critical to national security as defined by export control regulatory agencies in consultation with the National Security Adviser and the Secretary of Defense; demonstrate management processes to identify and mitigate supply chain security risks; and be able to produce semiconductors consistent with applicable measurably secure supply chain and operational security standards established under section 224(b) of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ). The Secretary of Defense and the Director of National Intelligence shall select participants for the consortium formed with incentives under paragraph (1). In selecting such participants, the Secretary and the Director may jointly consider whether the United States companies— have participated in previous programs and projects of the Department of Defense, Department of Energy, or the intelligence community, including— the Trusted Integrated Circuit program of the Intelligence Advanced Research Projects Activity; trusted and assured semiconductors projects, as administered by the Department of Defense; the Electronics Resurgence Initiative
(ERI)program of the Defense Advanced Research Projects Agency; or relevant semiconductor research programs of Advanced Research Projects Agency–Energy; have demonstrated an ongoing commitment to performing contracts for the Department of Defense and the intelligence community; are approved by the Defense Counterintelligence and Security Agency or the Office of the Director of National Intelligence as presenting an acceptable security risk, taking into account supply chain assurance vulnerabilities, counterintelligence risks, and any risks presented by companies whose owners are located outside the United States; and are evaluated periodically for foreign ownership, control, or influence by foreign entities of concern. Arrangements entered into to carry out paragraph
(1)shall be in such form as the Secretary of Defense determines appropriate to encourage industry participation of nontraditional defense contractors or commercial entities and may include a contract, a grant, a cooperative agreement, a commercial agreement, the use of other transaction authority under section 2371 of title 10, United States Code, or another such arrangement. 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. The Secretary of Defense shall dedicate initiatives within the Department of Defense to advance radio frequency, mixed signal, radiation tolerant, and radiation hardened semiconductors that support national security and dual-use applications. Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the plans of the Secretary to carry out paragraph (1). Not later than 1 year after the date on which the Secretary submits the report required by subparagraph
(A)and not less frequently than once every 2 years thereafter for a period of 10 years, the Comptroller General of the United States shall submit to Congress a report on the activities carried out under this subsection. Not later than 120 days after the date of the enactment of this Act, the President shall submit to Congress a report on a plan for any use of authorities available in title III of the Defense Production Act of 1950 ( 50 U.S.C. 4531 et seq.) to establish or enhance a domestic production capability for microelectronic technologies and related technologies, subject to— the availability of appropriations for that purpose; and a determination made under the plan pursuant to such title III that such technologies are essential to the national defense. The President shall develop the plan required by paragraph
(1)in consultation with any relevant head of a Federal agency, any advisory committee established under section 708(a) of the Defense Production Act of 1950 ( 50 U.S.C. 4558 ), and appropriate stakeholders in the private sector.
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Sec. 247
Microelectronics and national security
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