Sec. 154. Department of Defense investment in the microelectronics industry
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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 semiconductor companies in the United States, to ensure the development and production of advanced, measurably secure microelectronics for use by the Department of Defense, the intelligence community, critical infrastructure sectors, and other national security applications.
Such work may include providing incentives for the creation, expansion, or modernization of one or more commercially competitive and sustainable microelectronics manufacturing or advanced research and development facilities. A participant in a consortium formed with incentives under paragraph
(1)shall— have the potential to perform design, fabrication, assembly, package, or test functions for microelectronics deemed critical to national security as defined by the National Security Adviser and the Secretary of Defense; include management processes to identify and mitigate supply chain security risks; and be able to produce microelectronics 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 microelectronics 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 adversaries. 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 microelectronics 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 use by the Department of Defense of authorities available in title III of the Defense Production Act of 1950 ( 50 U.S.C. 4531 et seq.) to establish and enhance a domestic production capability for microelectronics technologies and related technologies, subject to the availability of appropriations for that purpose. The President shall develop the plan required by paragraph
(1)in coordination with the Secretary of Defense, and in consultation with the Secretary of State, the Secretary of Commerce, and appropriate stakeholders in the private sector. Not later than 1 year after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Secretary of Energy, the Secretary of Homeland Security, and the Director of National Intelligence, shall establish requirements, standards, and a timeline for enforcement of such requirements, to the extent possible, for domestic sourcing for microelectronics design and foundry services, and for commercial microelectronics products, by programs, contractors, subcontractors, and other recipients of funding from the Department of Defense, Department of Energy, Department of Homeland Security, and the Director of National Intelligence. The requirements established under paragraph
(1)shall include processes to permit waivers for specific contracts or transactions for domestic sourcing requirements based on cost, availability, severity of technical and mission requirements, emergency requirements and operational needs, other legal or international treaty obligations, or other factors. Not less frequently than once each year, the Secretary shall— update the requirements and timelines established under paragraph
(1)and the processes under paragraph (2); and submit to Congress a report on the updates made under subparagraph (A).
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Sec. 154
Department of Defense investment in the microelectronics industry
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