Sec. 233. Requiring certain microelectronics products and services meet trusted supply chain and operational security standards
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To protect the United States from intellectual property theft and to ensure national security and public safety in the application of new generations of wireless network technology and microelectronics, beginning on January 1, 2022, the Secretary of Defense shall— ensure that each critical microelectronics product and service that the Department of Defense purchases on or after such date meets the trusted supply chain and operational security standards established pursuant to subsection (b), except in a case in which the Department seeks to purchase a critical microelectronics product or service, but— no such product or service is available for purchase that meets such standards; or no such product or service is available for purchase that— meets such standards; and is available at a price that the Secretary does not consider prohibitively expensive; and to the maximum extent practicable, ensure that each microelectronics product and service, other than a critical microelectronics product and service, that is purchased by the Department of Defense on or after such date meets the trusted supply chain and operational security standards established pursuant to subsection (b).
For purposes of this section, a critical microelectronics product or service is a microelectronics product, or a service based on such a product, that is designated by the Secretary as critical to meeting national security needs. Not later than January 1, 2021, the Secretary shall establish trusted supply chain and operational security standards for the purchase of microelectronics products and services by the Department. In developing standards under paragraph (1), the Secretary shall consult with the following:
The Secretary of Homeland Security, the Secretary of State, the Secretary of Commerce, and the Director of the National Institute of Standards and Technology. Suppliers of microelectronics products and services from the United States and allies and partners of the United States. Representatives of major United States industry sectors that rely on a trusted supply chain and the operational security of microelectronics products and services. Representatives of the United States insurance industry.
In carrying out paragraph (1), the Secretary may establish tiers of trust and security within the supply chain and operational security standards for microelectronics products and services. The standards established pursuant to paragraph
(1)shall be, to the greatest extent practicable, generally applicable to the trusted supply chain and operational security needs and use cases of the United States Government and commercial industry, such that the standards could be widely adopted by government and commercial industry. Not later than October 1 of each year, the Secretary shall review the standards established pursuant to paragraph
(1)and issue updates or modifications as the Secretary considers necessary or appropriate. The Secretary shall, to the greatest extent practicable, ensure that suppliers of microelectronics products for the Federal Government who meet the standards established under subsection
(b)are able and incentivized to sell products commercially that are produced on the same production lines as the microelectronics products supplied to the Federal Government. The Secretary shall, to the greatest extent practicable, ensure that the requirements of the Department and the acquisition by the Department of microelectronics enable the success of a dual-use microelectronics industry. The Secretary shall take such actions as the Secretary considers necessary and appropriate, within the Secretary’s authorized activities to maintain the health of the defense industrial base, to ensure that— providers of microelectronics products and services that meet the standards established under subsection
(b)are exposed to competitive market pressures to achieve competitive pricing and sustained innovation; and the industrial base of microelectronics products and services that meet the standards established under subsection
(b)includes providers producing in or belonging to countries that are allies or partners of the United States.