Sec. 276. MICROELECTRONICS AND NATIONAL SECURITY
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## SEC. 276 MICROELECTRONICS AND NATIONAL SECURITY Section 231 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 2302 note) is amended— ####
(1)in subsection (a)— #####
(A)by inserting “, in collaboration with the Under Secretary of Defense for Acquisition and Sustainment, the Under Secretary for Research and Engineering, and the Director of the Defense Advanced Research Projects Agency,” after “shall”; and #####
(B)by striking “September 30, 2019” and inserting “June 1, 2021”; ####
(2)in subsection (b), by adding at the end the following new paragraphs: > > #### “(10) > > An approach to ensuring the continuing production of cutting-edge microelectronics for national security needs, including access to state-of-the-art node sizes through commercial manufacturing, heterogeneous integration, advantaged sensor manufacturing, boutique chip designs, and variable volume production capabilities. > > > #### “(11) > > An assessment of current microelectronics supply chain management best practices, including— > > > ##### “(A) > > intellectual property controls; > > > ##### “(B) > > international standards; > > > ##### “(C) > > guidelines of the National Institute of Standards and Technology; > > > ##### “(D) > > product traceability and provenance; and > > > ##### “(E) > > location of design, manufacturing, and packaging facilities. > > > #### “(12) > > An assessment of existing risks to the current microelectronics supply chain. > > > #### “(13) > > A description of actions that may be carried out by the defense industrial base to implement best practices described in paragraph
(11)and mitigate risks described in paragraph (12). > > > #### “(14) > > A plan for increasing commercialization of intellectual property developed by the Department of Defense for commercial microelectronics research and development. > > > #### “(15) > > An assessment of the feasibility, usefulness, efficacy, and cost of— > > > ##### “(A) > > 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 > > > ##### “(B) > > 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. > > > #### “(16) > > The development of multiple models of public-private partnerships to execute the strategy, including in-depth analysis of establishing a semiconductor manufacturing corporation to leverage private sector technical, managerial, and investment expertise, and private capital, that would have the authority and funds to provide grants or approve investment tax credits, or both, to implement the strategy. > > > #### “(17) > > Processes and criteria for competitive selection of commercial companies, including companies headquartered in countries that are allies or partners with the United States, to provide design, foundry and assembly, and packaging services and to build and operate the industrial capabilities associated with such services. > > > #### “(18) > > The role that other Federal agencies should play in organizing and supporting the strategy, including any required direct or indirect funding support, or legislative and regulatory actions, including restricting procurement to domestic sources, and providing antitrust and export control relief. > > > #### “(19) > > All potential funding sources and mechanisms for initial and sustaining investments in microelectronics. > > > #### “(20) > > Such other matters as the Secretary of Defense determines to be relevant.” > ; ####
(3)in subsection (d), by striking “September 30, 2019” and inserting “June 1, 2021”; ####
(4)in subsection (e), by striking “September 30, 2020” and inserting “June 1, 2021”; and ####
(5)by redeignating subsection
(f)as subsection (g); ####
(6)by inserting after subsection
(e)the following new subsection (f): > > ### “(f) Submission > > Not later than June 1, 2021, the Secretary of Defense shall submit the strategy required in subsection (a), along with any views and recommendations and an estimated budget to implement the strategy, to the President, the National Security Council, and the National Economic Council.” > .
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