Sec. 10002. Semiconductor incentives
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Section 9901 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is amended— in paragraph (2)— by inserting production, before or research and development ; and by striking of semiconductors. and inserting of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment. ; by redesignating paragraphs (4), (5), (6), (7), (8), and
(9)as paragraphs (5), (6), (7), (8), (10), and (11), respectively; by inserting after paragraph
(3)the following: The term critical manufacturing industry — means an industry— that is assigned a North American Industry Classification System code beginning with 31, 32, or 33; and for which the industry components that are assigned a North American Industry Classification System code beginning with the same 4 digits as the industry— manufacture primary products and parts, the sum of which account for not less than 5 percent of the manufacturing value added by industry gross domestic product of the United States; and employ individuals for primary products and parts manufacturing activities that, combined, account for not less than 5 percent of manufacturing employment in the United States; and may include any other manufacturing industry designated by the Secretary based on the relevance of the manufacturing industry to the national and economic security of the United States, including the impacts of job losses. ; and by inserting after paragraph (8), as so redesignated, the following: The term mature technology node has the meaning given the term by the Secretary. . Section 9902 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is amended— in subsection (a)(1)— by striking for semiconductor fabrication and inserting for the fabrication ; by inserting production, before or research and development ; and by striking the period at the end and inserting of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment. ; and in subsection (a)(2)— in subparagraph (B)(ii)— in subclause (III), by striking and at the end; in subclause (IV), by striking the period at the end and inserting and ; and by adding at the end the following: determined— the type of semiconductor technology the covered entity will produce at the facility described in clause (i); and the customers to which the covered entity plans to sell the semiconductor technology described in item (aa). ; in subparagraph (C)— in clause (i)— in subclause (II), by striking is in the interest of the United States and inserting is in the economic and national security interests of the United States ; and in subclause (III), by striking and at the end; in clause (ii)(IV), by striking and at the end; by redesignating clause
(iii)as clause (iv); and by inserting after clause
(ii)the following: the Secretary shall consider the type of semiconductor technology produced by the covered entity and whether that semiconductor technology advances the economic and national security interests of the United States; and ; by redesignating subparagraph
(D)as subparagraph
(E)and by inserting at the end of such subparagraph the following: Any applicant with more than 100 employees shall provide data to the Secretary on the racial diversity of their workforce. ; and by inserting after subparagraph
(C)the following: In awarding Federal financial assistance to covered entities under subsection (a), the Secretary shall give priority to ensuring that a covered entity receiving financial assistance will— manufacture semiconductors necessary to address gaps and vulnerabilities in the domestic supply chain across a diverse range of technology and process nodes; and provide a secure supply of semiconductors necessary for the national security, manufacturing, critical infrastructure, and technology leadership of the United States and other essential elements of the economy of the United States. ; in paragraph (4)(A), by striking used for semiconductors and inserting used for the purposes ; in subsection (c)(1)(B)— in clause (i), by striking ; and and inserting a semicolon; and by adding at the end the following: the Federal Government could take specific actions to address shortages in the semiconductor supply chain, including— demand-side incentives, including incentives related to the information and communications technology supply chain; and additional incentives, at national and global scales, to accelerate utilization of leading-edge semiconductor nodes to address shortages in mature semiconductor nodes; and ; in subsection (c)(1)(C)(iii), by striking including efforts to hire individuals from disadvantaged populations; and and inserting including— efforts to hire individuals from disadvantaged populations; and the aggregated racial diversity of workforce data for applicants who received awards made under the program and separately for applicants who unsuccessfully applied for such an award; and ; and by adding at the end the following: It is the sense of Congress that, in carrying out subsection (a), the Secretary should allocate funds in a manner that— strengthens the security and resilience of the semiconductor supply chain, including by mitigating gaps and vulnerabilities; provides a supply of secure semiconductors relevant for national security; strengthens the leadership of the United States in semiconductor technology; grows the economy of the United States and supports job creation in the United States; in consultation with the Director of the Minority Business Development Agency, adequately addresses the inclusion of economically disadvantaged individuals and similarly-situated small businesses; and improves the resiliency of the semiconductor supply chains of critical manufacturing industries. The Secretary shall establish within the program established under subsection
(a)an additional program that provides Federal financial assistance to covered entities to incentivize investment in facilities and equipment in the United States for the fabrication, assembly, testing, or advanced packaging of semiconductors at mature technology nodes. In order for an entity to qualify to receive Federal financial assistance under this subsection, the covered entity shall— submit an application under subsection (a)(2)(A); meet the eligibility requirements under subsection (a)(2)(B); provide equipment or materials for the fabrication, assembly, testing, or advanced packaging of semiconductors at mature technology nodes in the United States; or fabricate, assemble using advanced packaging, or test semiconductors at mature technology nodes in the United States; commit to using any Federal financial assistance received under this section to increase the production of semiconductors at mature technology nodes; and be subject to the considerations described in subsection (a)(2)(C). In granting Federal financial assistance to covered entities under this subsection, the Secretary may use the procedures established under subsection (a). In addition to the considerations described in subsection (a)(2)(C), in granting Federal financial assistance under this subsection, the Secretary may consider whether a covered entity produces or supplies equipment or materials used in the fabrication, assembly, testing, or advanced packaging of semiconductors at mature technology nodes that are necessary to support a critical manufacturing industry. In awarding Federal financial assistance to covered entities under this subsection, the Secretary shall give priority to covered entities that support the resiliency of semiconductor supply chains for critical manufacturing industries in the United States. There are authorized to be appropriated to the Secretary to carry out this subsection $2,000,000,000, which shall remain available until expended. Section 602 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3212 ) shall apply to a construction project that receives financial assistance from the Secretary under this section. . Section 9906 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is amended— in subsection (a)(3)(A)(ii)(II), by inserting , including for technologies based on organic and inorganic materials before the semicolon at the end; and by adding at the end the following: Section 602 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3212 ) shall apply to a construction project that receives financial assistance from the Secretary under this section. . Section 9902 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is amended by adding at the end the following: Subject to the requirements of subsection
(a)of this section, the Secretary of Commerce is authorized to make or guarantee loans to covered entities as financial assistance under this section. Loans made or guaranteed under this section will be on such terms and conditions as the Secretary may prescribe. . Section 9906 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is amended— in subsection (c)(1) by adding at the end the following: The Secretary may make financial assistance awards in support of the center. ; in subsection (c)(2)(B) by inserting and capitalize before an investment fund ; in subsection
(d)by— striking the Manufacturing USA institute and inserting a Manufacturing USA institute ; and adding to the end the following: The Director may make financial assistance awards in support of the Program. ; and in subsection
(f)by— striking a Manufacturing USA Institute and inserting one or more Manufacturing USA Institutes ; striking is focused on semiconductor manufacturing and inserting are focused on semiconductor manufacturing ; inserting The Secretary may also provide financial assistance to any Manufacturing USA institute for work related to semiconductor manufacturing. after focused on semiconductor manufacturing. ; and striking Such institute may emphasize and inserting Such institutes may emphasize . The William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is amended by adding at the end the following: In carrying out the responsibilities of the Department of Commerce under this Act, the Secretary of Commerce may— enter into agreements, including contracts, grants and cooperative agreements, and other transactions as may be necessary and on such terms as the Secretary considers appropriate; make advance payments under agreements and other transactions authorized by paragraph
(1)without regard to section 3324 of title 31, United States Code; include a clause that requires a person or other entity to make payments to the Department of Commerce as a condition for receiving support through an award of assistance or other transaction, and any funds received shall be credited to and merged with the account from which such support was made; procure temporary and intermittent services of experts and consultants in accordance with section 3109 of title 5, United States Code; notwithstanding section 3104 of title 5, United States Code, or the provisions of any other law relating to the appointment, number, classification, or compensation of employees, make appointments of scientific, engineering, and professional personnel, and fix the basic pay of such personnel at a rate to be determined by the Secretary at rates not in excess of the highest total annual compensation payable at the rate determined under section 104 of title 3, United States Code, except that the Secretary shall appoint not more than 25 personnel under this paragraph; and with the consent of another Federal agency, enter into an agreement with that Federal agency to utilize, with or without reimbursement, any service, equipment, personnel, or facility of that Federal agency. . The analysis for the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is amended by adding after the item relating to section 9908 the following: 9909. Additional authorities. .
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