15 U.S.C. § 4651 — Definitions

Page 2135 TITLE 15—COMMERCE AND TRADE § 4651 1 So in original. Probably should be ‘‘Committee’’. 2 So in original. of title I of division C of Pub. L. 100–180 which com- prises this subchapter. AMENDMENTS 1992—Subsec. (f). Pub. L. 102–245 substituted ‘‘1990, 1991, 1992, and 1993’’ for ‘‘and 1990’’. Statutory Notes and Related Subsidiaries TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions in subsec. (e)(5) of this section relating to submitting annual report to Congress, see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance, and page 178 of House Document No. 103–7. TERMINATION OF ADVISORY COMMITTEES Advisory committees established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. See section 1013 of Title 5, Government Organization and Employees. CHAPTER 72A—CREATING HELPFUL INCEN- TIVES TO PRODUCE SEMICONDUCTORS FOR AMERICA Sec. 4651. Definitions. 4652. Semiconductor incentives. 4653. Department of Defense. 4654. Department of Commerce study on status of microelectronics technologies in the United States industrial base. 4655. Funding for development and adoption of measurably secure semiconductors and measurably secure semiconductors supply chains. 4656. Advanced microelectronics research and de- velopment. 4657. Prohibition relating to foreign entities of concern. 4658. Defense Production Act of 1950 efforts. 4659. Additional authorities. § 4651. Definitions In this chapter: (1) The term ‘‘appropriate committees of Congress’’ means— (A) the Select Committee on Intelligence, the Committee on Energy and Natural Re- sources, the Committee on Commerce, Science, and Transportation, the Committee on Foreign Relations, the Committee on Armed Services, the Committee on Appro- priations, the Committee on Banking, Hous- ing, and Urban Affairs, the Committee on Homeland Security and Governmental Af- fairs, and the Committee on Finance of the Senate; and (B) the Permanent Select committee 1 on Intelligence, the Committee on Energy and Commerce, the Committee on Foreign Af- fairs, the Committee on Armed Services, the Committee on Science, Space, and Tech- nology, the Committee on Appropriations, the Committee on Financial Services, the Committee on Homeland Security, and the Committee on Ways and Means of the House of Representatives..2 (2) The term ‘‘covered entity’’ means a non- profit entity, a private entity, a consortium of private entities, or a consortium of nonprofit, public, and private entities with a dem- onstrated ability to substantially finance, construct, expand, or modernize a facility re- lating to fabrication, assembly, testing, ad- vanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semi- conductor manufacturing equipment. (3) The term ‘‘covered incentive’’: (A) means an incentive offered by a gov- ernmental entity to a covered entity for the purposes of constructing within the jurisdic- tion of the governmental entity, or expand- ing or modernizing an existing facility with- in that jurisdiction, a facility described in paragraph (2); and (B) a workforce-related incentive (includ- ing a grant agreement relating to workforce training or vocational education), any con- cession with respect to real property, fund- ing for research and development with re- spect to semiconductors, and any other in- centive determined appropriate by the Sec- retary, in consultation with the Secretary of State. (4) The term ‘‘person’’ includes an indi- vidual, partnership, association, corporation, organization, or any other combination of in- dividuals. (5) The term ‘‘critical manufacturing indus- try’’— (A) means an industry, industry group, or a set of related industries or related indus- try groups— (i) assigned a North American Industry Classification System code beginning with 31, 32, or 33; and (ii) for which the applicable industry group or groups in the North American In- dustry Classification System code cumula- tively— (I) 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 (II) employ individuals for primary products and parts manufacturing ac- tivities that, combined, account for not less than 5 percent of manufacturing em- ployment in the United States; and (B) may include any other manufacturing industry designated by the Secretary based on the relevance of the manufacturing in- dustry to the national and economic secu- rity of the United States, including the im- pacts of job losses. (6) The term ‘‘foreign entity’’— (A) means— (i) a government of a foreign country and a foreign political party; Page 2136 TITLE 15—COMMERCE AND TRADE § 4651 3 See References in Text note below. (ii) a natural person who is not a lawful permanent resident of the United States, citizen of the United States, or any other protected individual (as such term is de- fined in section 1324b(a)(3) of title 8; or (iii) a partnership, association, corpora- tion, organization, or other combination of persons organized under the laws of or hav- ing its principal place of business in a for- eign country; and (B) includes— (i) any person owned by, controlled by, or subject to the jurisdiction or direction of a an entity listed in subparagraph (A); (ii) any person, wherever located, who acts as an agent, representative, or em- ployee of an entity listed in subparagraph (A); (iii) any person who acts in any other ca- pacity at the order, request, or under the direction or control, of an entity listed in subparagraph (A), or of a person whose ac- tivities are directly or indirectly super- vised, directed, controlled, financed, or subsidized in whole or in majority part by an entity listed in subparagraph (A); (iv) any person who directly or indi- rectly through any contract, arrangement, understanding, relationship, or otherwise, owns 25 percent or more of the equity in- terests of an entity listed in subparagraph (A); (v) any person with significant responsi- bility to control, manage, or direct an en- tity listed in subparagraph (A); (vi) any person, wherever located, who is a citizen or resident of a country con- trolled by an entity listed in subparagraph (A); or (vii) any corporation, partnership, asso- ciation, or other organization organized under the laws of a country controlled by an entity listed in subparagraph (A). (7) The term ‘‘foreign country of concern’’ means— (A) a country that is a covered nation (as defined in section 4872(d) of title 10); and (B) any country that the Secretary, in con- sultation with the Secretary of Defense, the Secretary of State, and the Director of Na- tional Intelligence, determines to be en- gaged in conduct that is detrimental to the national security or foreign policy of the United States. (8) The term ‘‘foreign entity of concern’’ means any foreign entity that is— (A) designated as a foreign terrorist orga- nization by the Secretary of State under sec- tion 1189 of title 8; (B) included on the list of specially des- ignated nationals and blocked persons main- tained by the Office of Foreign Assets Con- trol of the Department of the Treasury; (C) owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is listed in section 2533c 3 of title 10; or (D) alleged by the Attorney General to have been involved in activities for which a conviction was obtained under— (i) chapter 37 of title 18 (commonly known as the ‘‘Espionage Act’’) (18 U.S.C. 792 [791] et seq.); (ii) section 951 or 1030 of title 18; (iii) chapter 90 of title 18 (commonly known as the ‘‘Economic Espionage Act of 1996’’); (iv) the Arms Export Control Act (22 U.S.C. 2751 et seq.); (v) sections 2274, 2275, 2276, 2277, or 2284 of title 42; (vi) the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.); or (vii) the International Economic Emer- gency Powers Act 3 (50 U.S.C. 1701 et seq.); or (E) determined by the Secretary, in con- sultation with the Secretary of Defense and the Director of National Intelligence, to be engaged in unauthorized conduct that is det- rimental to the national security or foreign policy of the United States under this chap- ter. (9) The term ‘‘governmental entity’’ means a State or local government. (10) The term ‘‘mature technology node’’ has the meaning given the term by the Secretary. (11) The term ‘‘nonprofit entity’’ means an entity described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of title 26. (12) The term ‘‘Secretary’’ means the Sec- retary of Commerce. (13) The term ‘‘semiconductor’’ has the meaning given that term by the Secretary. (Pub. L. 116–283, div. H, title XCIX, § 9901, Jan. 1, 2021, 134 Stat. 4843; Pub. L. 117–167, div. A, § 103(a), Aug. 9, 2022, 136 Stat. 1379.) Editorial Notes REFERENCES IN TEXT Section 2533c of title 10, referred to par. (8)(C), was re- numbered section 4872 of title 10 by Pub. L. 116–283, div. A, title XVIII, § 1870(d)(2), Jan. 1, 2021, 134 Stat. 4286, as amended by Pub. L. 117–81, div. A, title XVII, § 1701(t)(2)(B), (C), Dec. 27, 2021, 135 Stat. 2150. The Arms Export Control Act, referred to in par. (8)(D)(iv), is Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1320, which is classified principally to chapter 39 (§ 2751 et seq.) of Title 22, Foreign Relations and Intercourse. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of Title 22 and Tables. The Export Control Reform Act of 2018, referred to in par. (8)(D)(vi), is subtitle B (§§ 1741–1781) of title XVII of div. A of Pub. L. 115–232, Aug. 13, 2018, 132 Stat. 2208, which is classified principally to chapter 58 (§ 4801 et seq.) of Title 50, War and National Defense. For com- plete classification of this Act to the Code, see Short Title note set out under section 4801 of Title 50 and Ta- bles. The International Economic Emergency Powers Act, referred to in par. (8)(D)(vii), probably should be the International Emergency Economic Powers Act, which is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626 and is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables. Page 2137 TITLE 15—COMMERCE AND TRADE § 4651 This chapter, referred to in par. (8)(E), was in the original ‘‘this Act’’ and was translated as reading ‘‘this title’’, meaning title XCIX of div. H of Pub. L. 116–283, to reflect the probable intent of Congress. AMENDMENTS 2022—Par. (2). Pub. L. 117–167, § 103(a)(1), substituted ‘‘a nonprofit entity, a private entity, a consortium of private entities, or a consortium of nonprofit, public, and private entities’’ for ‘‘a private entity, a consor- tium of private entities, or a consortium of public and private entities’’ and ‘‘of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment.’’ for ‘‘of semiconductors.’’ and inserted ‘‘production,’’ before ‘‘or research and de- velopment’’. Pars. (5), (6). Pub. L. 117–167, § 103(a)(2), (3), added par. (5) and redesignated former par. (5) as (6). Former par. (6) redesignated (8). Par. (7). Pub. L. 117–167, § 103(a)(4), added par. (7). Former par. (7) redesignated (9). Pars. (8), (9). Pub. L. 117–167, § 103(a)(2), redesignated pars. (6) and (7) as (8) and (9), respectively. Former pars. (8) and (9) redesignated (12) and (13), respectively. Pars. (10), (11). Pub. L. 117–167, § 103(a)(5), added pars. (10) and (11). Pars. (12), (13). Pub. L. 117–167, § 103(a)(2), redesignated pars. (8) and (9) as (12) and (13), respectively. Statutory Notes and Related Subsidiaries SHORT TITLE OF 2024 AMENDMENT Pub. L. 118–105, § 1, Oct. 2, 2024, 138 Stat. 1587, provided that: ‘‘This Act [amending sections 4652 and 4659 of this title] may be cited as the ‘Building Chips in America Act of 2023’.’’ SHORT TITLE OF 2022 AMENDMENT Pub. L. 117–167, div. A, § 101, Aug. 9, 2022, 136 Stat. 1372, provided that: ‘‘This division [enacting section 4659 of this title and section 48D of Title 26, Internal Revenue Code, amending this section, sections 4652 and 4656 of this title, section 905 of Title 2, The Congress, sections 46, 49, 50, and 1371 of Title 26, and section 906 of Title 47, Telecommunications, and enacting provi- sions set out as notes under section 4652 of this title and section 905 of Title 2] may be cited as the ‘CHIPS Act of 2022’.’’ Executive Documents EX. ORD. NO. 14080. IMPLEMENTATION OF THE CHIPS ACT OF 2022 Ex. Ord. No. 14080, Aug. 25, 2022, 87 F.R. 52847, pro- vided: By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to effectively implement the in- centives for semiconductor research, development, and manufacturing provided by division A of H.R. 4346 (the ‘‘Act’’), it is hereby ordered as follows: SECTION 1. Background. The Act, known as the Cre- ating Helpful Incentives to Produce Semiconductors (CHIPS) Act of 2022 [div. A of Pub. L. 117–167], will make transformative investments to restore and ad- vance our Nation’s leadership in the research, develop- ment, and manufacturing of semiconductors. These in- vestments will strengthen our Nation’s manufacturing and industrial base; create well-paying, high-skilled jobs in construction, manufacturing, and maintenance; catalyze regional economic development throughout the country; bolster United States technology leader- ship; and reduce our dependence on critical tech- nologies from China and other vulnerable or overly concentrated foreign supply chains. Meeting these objectives will require effective imple- mentation of the Act by my Administration, in collabo- ration with State, local, Tribal, and territorial govern- ments; the private sector; institutions of higher edu- cation; workforce development organizations; labor unions and other worker organizations; and allied and partner countries. SEC. 2. Implementation Priorities. In implementing the Act, all agencies (as described in section 3502(1) of title 44, United States Code, except for the agencies de- scribed in section 3502(5) of title 44) shall, as appro- priate and to the extent consistent with law, prioritize: (a) protecting taxpayer resources, including by ensur- ing strong compliance and accountability measures for funding recipients; (b) meeting economic, sustainability, and national security needs, including by building domestic manu- facturing capacity that reduces reliance on vulnerable or overly concentrated foreign production for both leading-edge and mature microelectronics; (c) ensuring long-term leadership in the microelec- tronics sector, including by establishing a dynamic, collaborative network for microelectronics research and innovation to enable long-term United States lead- ership in critical industries; (d) catalyzing private-sector investment, including by reducing risk and maximizing large-scale private in- vestment in production, breakthrough technologies, and worker and workforce development; (e) generating benefits—such as well-paying, high- skilled union jobs and opportunities for startups; small businesses; and minority-owned, veteran-owned, and women-owned businesses—for a broad range of stake- holders and communities, including by investing in dis- advantaged communities and by partnering with State, local, Tribal, and territorial governments and with in- stitutions of higher education; and (f) strengthening and expanding regional manufac- turing and innovation ecosystems, including by invest- ing in suppliers, manufacturers, workforce develop- ment, basic and translational research, and related in- frastructure and cybersecurity throughout the micro- electronics supply chain, and by facilitating the expan- sion, creation, and coordination of semiconductor clus- ters. SEC. 3. CHIPS Implementation Steering Council. (a) There is established within the Executive Office of the President the CHIPS Implementation Steering Council (Steering Council). The function of the Steering Coun- cil is to coordinate policy development to ensure the effective implementation of the Act within the execu- tive branch. (b) The Assistant to the President for Economic Pol- icy, the Assistant to the President for National Secu- rity Affairs, and the Director of the Office of Science and Technology Policy shall serve as Co-Chairs of the Steering Council. (c) In addition to the Co-Chairs, the Steering Council shall consist of the following members: (i) the Secretary of State; (ii) the Secretary of the Treasury; (iii) the Secretary of Defense; (iv) the Secretary of Commerce; (v) the Secretary of Labor; (vi) the Secretary of Energy; (vii) the Director of the Office of Management and Budget; (viii) the Administrator of the Small Business Ad- ministration; (ix) the Director of National Intelligence; (x) the Assistant to the President for Domestic Pol- icy; (xi) the Chair of the Council of Economic Advisers; (xii) the National Cyber Director; (xiii) the Director of the National Science Founda- tion; and (xiv) the heads of such other executive departments, agencies, and offices as the Co-Chairs may from time to time invite to participate. (d) The Co-Chairs may create and coordinate sub- groups consisting of Steering Council members or their designees, as appropriate. (e) The Co-Chairs may consult with leaders from in- dustry, labor unions and other worker organizations, Page 2138 TITLE 15—COMMERCE AND TRADE § 4652 1 So in original. Probably should be followed by a semicolon. institutions of higher education, research institutions, and civil society, as appropriate and consistent with law, to provide individual perspectives and advice to the Steering Council on the effective implementation of the Act. (f) The Co-Chairs may consult with the President’s Council of Advisors on Science and Technology, as ap- propriate and consistent with law, to provide advice to the Steering Council. SEC. 4. Effective and Efficient Stewardship and Over- sight of Taxpayer Resources. The Director of the Office of Management and Budget shall take appropriate actions to promote and monitor, with respect to execution of the Act, the effective and efficient stewardship and oversight of taxpayer resources, in collaboration with the Steering Council and the heads of agencies respon- sible for implementing the Act. SEC. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appro- priations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforce- able at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. J.R. BIDEN, JR. § 4652. Semiconductor incentives (a) Financial assistance program (1) In general The Secretary shall establish in the Depart- ment of Commerce a program that, in accord- ance with the requirements of this section and subject to the availability of appropriations for such purposes, provides Federal financial assistance to covered entities to incentivize investment in facilities and equipment in the United States for the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconduc- tors, or semiconductor manufacturing equip- ment. (2) Procedure (A) In general A covered entity shall submit to the Sec- retary an application that describes the project for which the covered entity is seek- ing financial assistance under this section. (B) Eligibility In order for a covered entity to qualify for financial assistance under this section, the covered entity shall demonstrate to the Sec- retary, in the application submitted by the covered entity under subparagraph (A), that— (i) the covered entity has a documented interest in constructing, expanding, or modernizing a facility described in para- graph (1) 1 (ii) with respect to the project described in clause (i), the covered entity has— (I) been offered a covered incentive; (II) made commitments to worker and community investment, including through— (aa) training and education benefits paid by the covered entity; and (bb) programs to expand employment opportunity for economically dis- advantaged individuals; and (III) secured commitments from re- gional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job place- ment of economically disadvantaged in- dividuals; (IV) an executable plan to sustain the facility described in clause (i) without additional Federal financial assistance under this subsection for facility sup- port; (V) determined— (aa) the type of semiconductor tech- nology, equipment, materials, or re- search and development the covered entity will produce at the facility de- scribed in clause (i); and (bb) the customers, or categories of customers, to which the covered entity plans to sell the semiconductor tech- nology, equipment, materials, or re- search and development described in item (aa); and (VI) documented, to the extent prac- ticable, workforce needs and developed a strategy to meet such workforce needs consistent with the commitments de- scribed in subclauses (II) and (III); (iii) with respect to the project described in clause (i), the covered entity has an exe- cutable plan to identify and mitigate rel- evant semiconductor supply chain security risks, such as risks associated with access, availability, confidentiality, integrity, and a lack of geographic diversification in the covered entity’s supply chain; and (iv) with respect to any project for the production, assembly, or packaging of semiconductors, the covered entity has implemented policies and procedures to combat cloning, counterfeiting, and re- labeling of semiconductors, as applicable. (C) Considerations for review With respect to the review by the Sec- retary of an application submitted by a cov- ered entity under subparagraph (A)— (i) the Secretary may not approve the application unless the Secretary— (I) confirms that the covered entity has satisfied the eligibility criteria under subparagraph (B); (II) determines that the project to which the application relates is in the economic and national security interests of the United States; and (III) has notified the appropriate com- mittees of Congress not later than 15 days before making any commitment to provide a grant to any covered entity that exceeds $10,000,000;