15 U.S.C. § 4656 — Advanced microelectronics research and

Page 2149 TITLE 15—COMMERCE AND TRADE § 4656 (2) Commitments In creating and sustaining a common fund- ing mechanism described in paragraph (1), the Secretary of State should promote efforts among foreign partners to— (A) establish transparency requirements for any subsidies or other financial benefits (including revenue foregone) provided to semiconductors firms located in or outside such countries; (B) establish consistent policies with re- spect to countries that— (i) are not participating in the common funding mechanism; and (ii) do not meet transparency require- ments established under subparagraph (A); (C) promote harmonized treatment of semiconductors and verification processes for items being exported to a country con- sidered a national security risk by a country participating in the common funding mecha- nism; (D) establish consistent policies and com- mon external policies to address nonmarket economies as the behavior of such countries pertains to semiconductors; (E) align policies on supply chain integrity and semiconductors security, including with respect to protection and enforcement of in- tellectual property rights; and (F) promote harmonized foreign direct in- vestment screening measures and export control policies with respect to semiconduc- tors to align with national, multilateral, and plurilateral security priorities. (c) Notifications to be provided by the Fund (1) In general Not later than 15 days prior to the Fund making a financial commitment associated with the provision of expenditures under sub- section (a)(4)(A) in an amount in excess of $1,000,000, the Secretary of State shall submit to the appropriate committees of Congress re- port in writing that contains the information required by paragraph (2). (2) Information required The information required by this subsection includes— (A) the amount of each such expenditure; (B) an identification of the recipient or beneficiary; and (C) a description of the project or activity and the purpose to be achieved by an expend- iture of the Fund. (3) Arrangements or agreements The Secretary of State shall notify the ap- propriate committees of Congress not later than 30 days after entering into a new bilat- eral or multilateral arrangement or agree- ment described in subsection (a)(4)(B). (Pub. L. 116–283, div. H, title XCIX, § 9905, Jan. 1, 2021, 134 Stat. 4854; Pub. L. 118–31, div. F, title LXVII, § 6707(b)(1)(B), Dec. 22, 2023, 137 Stat. 1018.) Editorial Notes AMENDMENTS 2023—Subsecs. (c), (d). Pub. L. 118–31 redesignated subsec. (d) as (c) and struck out former subsec. (c) which required the Secretary of State to report to Con- gress annually on the implementation of this section. § 4656. Advanced microelectronics research and development (a) Subcommittee on microelectronics leadership (1) Establishment required The President shall establish in the National Science and Technology Council a sub- committee on matters relating to leadership and competitiveness of the United States in microelectronics technology and innovation (in this section referred to as the ‘‘Sub- committee)’’. (2) Membership The Subcommittee shall be composed of the following members: (A) The Secretary of Defense. (B) The Secretary of Energy. (C) The Director of the National Science Foundation. (D) The Secretary of Commerce. (E) The Secretary of State. (F) The Secretary of Homeland Security. (G) The United States Trade Representa- tive. (H) The Director of National Intelligence. (I) The heads of such other departments and agencies of the Federal Government as the President determines appropriate. (3) Duties The duties of the Subcommittee are as fol- lows: (A) National strategy on microelectronics re- search (i) In general In consultation with the advisory com- mittee established in (b), and other appro- priate stakeholders in the microelec- tronics industry and academia, the Sub- committee shall develop a national strat- egy on microelectronics research, develop- ment, manufacturing, and supply chain se- curity to— (I) accelerate the domestic develop- ment and production of microelectronics and strengthen the domestic microelec- tronics workforce; and (II) ensure that the United States is a global leader in the field of microelec- tronics research and development. (ii) Elements The strategy developed under this sub- paragraph shall address— (I) activities that may be carried out to strengthen engagement and outreach between the Department of Defense and industry, academia, international part- ners of the United States, and other de- partments and agencies of the Federal Government on issues relating to micro- electronics; (II) priorities for research and develop- ment to accelerate the advancement and adoption of innovative microelectronics and new uses of microelectronics and components, including for technologies Page 2150 TITLE 15—COMMERCE AND TRADE § 4656 1 See References in Text note below. based on organic and inorganic mate- rials; (III) the role of diplomacy and trade in maintaining the position of the United States as a global leader in the field of microelectronics; (IV) the potential role of a Federal lab- oratory, center, or incubator exclusively focused on the research and development of microelectronics, as described in sec- tion 231(b)(15) of the National Defense Authorization Act for Fiscal Year 2017 (as added by section 276 of this Act) in carrying out the strategy and plan re- quired under this subparagraph; and (V) such other activities as the Sub- committee determines may be appro- priate to overcome future challenges to the innovation, competitiveness, supply chain integrity, and workforce develop- ment of the United States in the field of microelectronics. (B) Fostering coordination of research and development The Subcommittee shall coordinate micro- electronics related research, development, manufacturing, and supply chain security activities and budgets of Federal agencies and ensure such activities are consistent with the strategy required under subpara- graph (A). (C) Reporting and updates (i) Progress briefing Not later than one year after January 1, 2021, the President shall provide to the ap- propriate committees of Congress a brief- ing on the progress of the Subcommittee in developing the strategy required under subparagraph (A). (ii) Strategy update Not less frequently than once every 5 years, the Subcommittee shall update the strategy developed under subparagraph (A) and submit the revised strategy to the ap- propriate committees of Congress. (4) Sunset The Subcommittee shall terminate on the date that is 10 years after January 1, 2021. (b) Industrial advisory committee (1) Establishment The Secretary of Commerce, in consultation with the Secretary of Defense, the Secretary of Energy, and the Secretary of Homeland Se- curity, shall establish an advisory committee to be composed of not fewer than 12 members, including representatives of industry, federal laboratories, and academic institutions, who are qualified to provide advice to the United States Government on matters relating to microelectronics research, development, man- ufacturing, and policy. (2) Duties The advisory committee shall assess and provide guidance to the United States Govern- ment on— (A) science and technology needs of the na- tion’s domestic microelectronics industry; (B) the extent to which the strategy devel- oped under subsection (a)(3) is helping main- tain United States leadership in microelec- tronics manufacturing; (C) assessment of the research and devel- opment programs and activities authorized under this section; and (D) opportunities for new public-private partnerships to advance microelectronics re- search, development, and domestic manufac- turing. (3) FACA exemption Section 14 of the Federal Advisory Com- mittee Act (5 U.S.C. App.) 1 shall not apply to the advisory committee established under this subsection. (c) National semiconductor technology center (1) Establishment Subject to the availability of appropriations for such purpose, the Secretary of Commerce, in collaboration with the Secretary of De- fense, shall establish a national semiconductor technology center to conduct research and prototyping of advanced semiconductor tech- nology and grow the domestic semiconductor workforce to strengthen the economic com- petitiveness and security of the domestic sup- ply chain. Such center shall be operated as a public private-sector consortium with partici- pation from the private sector, the Depart- ment of Energy, and the National Science Foundation. The Secretary may make finan- cial assistance awards, including construction awards, in support of the national semicon- ductor technology center. (2) Functions The functions of the center established under paragraph (1) shall be as follows: (A) To conduct advanced semiconductor manufacturing, design and packaging re- search, and prototyping that strengthens the entire domestic ecosystem and is aligned with the strategy required under subsection (a)(3)(A) with emphasis on the following: (i) Semiconductor advanced test, assem- bly, and packaging capability in the do- mestic ecosystem. (ii) Materials characterization, instru- mentation and testing for next generation microelectronics. (iii) Virtualization and automation of maintenance of semiconductor machinery. (iv) Metrology for security and supply chain verification. (B) To establish and capitalize an invest- ment fund, in partnership with the private sector, to support startups and collabora- tions between startups, academia, estab- lished companies, and new ventures, with the goal of commercializing innovations that contribute to the domestic semicon- ductor ecosystem, including— (i) advanced metrology and characteriza- tion for manufacturing of microchips using 3 nanometer transistor processes or more advanced processes; and Page 2151 TITLE 15—COMMERCE AND TRADE § 4656 (ii) metrology for security and supply chain verification. (C) To work with the Secretary of Labor, the Director of the National Science Foun- dation, the Secretary of Energy, the private sector, institutions of higher education, and workforce training entities to incentivize and expand geographically diverse participa- tion in graduate, undergraduate, and com- munity college programs relevant to micro- electronics, including through— (i) the development and dissemination of curricula and research training experi- ences; and (ii) the development of workforce train- ing programs and apprenticeships in ad- vanced microelectronic design, research, fabrication, and packaging capabilities. (d) National Advanced Packaging Manufacturing Program Subject to the availability of appropriations for such purpose, the Secretary of Commerce shall establish a National Advanced Packaging Manufacturing Program led by the Director of the National Institute of Standards and Tech- nology, in coordination with the national semi- conductor technology center established under subsection (c), to strengthen semiconductor ad- vanced test, assembly, and packaging capability in the domestic ecosystem, and which shall co- ordinate with a Manufacturing USA institute established under subsection (f), if applicable. The Director may make financial assistance awards, including construction awards, in sup- port of the National Advanced Packaging Manu- facturing Program. (e) Microelectronics research at the National In- stitute of Standards and Technology Subject to the availability of appropriations for such purpose, the Director of the National Institute of Standards and Technology shall carry out a microelectronics research program to enable advances and breakthroughs in meas- urement science, standards, material character- ization, instrumentation, testing, and manufac- turing capabilities that will accelerate the un- derlying research and development for metrol- ogy of next generation microelectronics and en- sure the competitiveness and leadership of the United States within this sector. (f) Creation of a Manufacturing USA institute Subject to the availability of appropriations for such purpose, the Director of the National Institute of Standards and Technology may es- tablish not more than 3 Manufacturing USA In- stitutes described in section 278s(d) of this title that are focused on semiconductor manufac- turing. The Secretary of Commerce may award financial assistance to any Manufacturing USA Institute for work relating to semiconductor manufacturing. Such institutes may emphasize the following: (1) Research to support the virtualization and automation of maintenance of semicon- ductor machinery. (2) Development of new advanced test, as- sembly and packaging capabilities. (3) Developing and deploying educational and skills training curricula needed to support the industry sector and ensure the United States can build and maintain a trusted and predictable talent pipeline. (g) Domestic production requirements The head of any executive agency receiving funding under this section shall develop policies to require domestic production, to the extent possible, for any intellectual property resulting from microelectronics research and development conducted as a result of such funding and do- mestic control requirements to protect any such intellectual property from foreign adversaries. (h) Construction projects Section 3212 of title 42 shall apply to a con- struction project that receives financial assist- ance under this section. (Pub. L. 116–283, div. H, title XCIX, § 9906, Jan. 1, 2021, 134 Stat. 4856; Pub. L. 117–167, div. A, § 103(c), Aug. 9, 2022, 136 Stat. 1388.) Editorial Notes REFERENCES IN TEXT Section 231(b)(15) of the National Defense Authoriza- tion Act for Fiscal Year 2017 (as added by section 276 of this Act), referred to in subsec. (a)(3)(A)(ii)(IV), is sec- tion 231(b)(15) of Pub. L. 114–328, as added by section 276 of Pub. L. 116–283, which is set out in a note under sec- tion 2302 of Title 10, Armed Forces. Section 14 of the Federal Advisory Committee Act, referred to in subsec. (b)(3), is section 14 of Pub. L. 92–463, which was set out in the Appendix to Title 5, Government Organization and Employees, and was re- pealed and restated as section 1013 of Title 5 by Pub. L. 117–286, §§ 3(a), 7, Dec. 27, 2022, 136 Stat. 4204, 4361. AMENDMENTS 2022—Subsec. (a)(3)(A)(ii)(II). Pub. L. 117–167, § 103(c)(1)(A), inserted ‘‘, including for technologies based on organic and inorganic materials’’ after ‘‘com- ponents’’. Subsec. (a)(3)(A)(ii)(V). Pub. L. 117–167, § 103(c)(1)(B), substituted ‘‘supply chain integrity, and workforce de- velopment’’ for ‘‘supply chain integrity’’. Subsec. (c)(1). Pub. L. 117–167, § 103(c)(2)(A), inserted ‘‘and grow the domestic semiconductor workforce’’ after ‘‘prototyping of advanced semiconductor tech- nology’’ and inserted at end ‘‘The Secretary may make financial assistance awards, including construction awards, in support of the national semiconductor tech- nology center.’’ Subsec. (c)(2)(B). Pub. L. 117–167, § 103(c)(2)(B)(i), in- serted ‘‘and capitalize’’ before ‘‘an investment fund’’ in introductory provisions. Subsec. (c)(2)(C). Pub. L. 117–167, § 103(c)(2)(B)(ii), added subpar. (C) and struck out former subpar. (C) which read as follows: ‘‘To work with the Secretary of Labor, the Director of the National Science Founda- tion, the Secretary of Energy, the private sector, insti- tutions of higher education, and workforce training en- tities to incentivize and expand participation in grad- uate and undergraduate programs, and develop work- force training programs and apprenticeships, in ad- vanced microelectronic design, research, fabrication, and packaging capabilities.’’ Subsec. (d). Pub. L. 117–167, § 103(c)(3), substituted ‘‘a Manufacturing USA institute’’ for ‘‘the Manufacturing USA institute’’ and inserted at end ‘‘The Director may make financial assistance awards, including construc- tion awards, in support of the National Advanced Pack- aging Manufacturing Program.’’ Subsec. (f). Pub. L. 117–167, § 103(c)(4), substituted, in introductory provisions, ‘‘not more than 3 Manufac- turing USA Institutes’’ for ‘‘a Manufacturing USA in- stitute’’, ‘‘are focused on semiconductor manufac- Page 2152 TITLE 15—COMMERCE AND TRADE § 4657 1 So in original. Probably should be followed by a period. turing. The Secretary of Commerce may award finan- cial assistance to any Manufacturing USA Institute for work relating to semiconductor manufacturing.’’ for ‘‘is focused on semiconductor manufacturing.’’, and ‘‘Such institutes may emphasize’’ for ‘‘Such institute may emphasize’’. Subsec. (h). Pub. L. 117–167, § 103(c)(5), added subsec. (h). § 4657. Prohibition relating to foreign entities of concern None of the funds authorized to be appro- priated to carry out this chapter may be pro- vided to a foreign entity of concern. (Pub. L. 116–283, div. H, title XCIX, § 9907, Jan. 1, 2021, 134 Stat. 4860.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this subtitle’’ 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. § 4658. Defense Production Act of 1950 efforts (a) In general Not later than 180 days after January 1, 2021, the President shall submit to Congress a report on a plan of action for any use of authorities available in title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) to establish or enhance a domestic production capability for microelectronics technologies and related tech- nologies, subject to— (1) the availability of appropriations for that purpose; and (2) a determination made under the plan pur- suant to such title III that such technologies are essential to the national defense and that domestic industrial capabilities are insuffi- cient to meet these needs. (b) Coordination The President shall develop the plan of action required by subsection (a) in consultation with any relevant head of a Federal agency, an advi- sory committee established under section 708(d) of the Defense Production Act of 1950 (50 U.S.C. 4558(d)), and appropriate stakeholders in the pri- vate sector. (Pub. L. 116–283, div. H, title XCIX, § 9908, Jan. 1, 2021, 134 Stat. 4860.) Editorial Notes REFERENCES IN TEXT The Defense Production Act of 1950, referred to in subsec. (a), is act Sept. 8, 1950, ch. 932, 64 Stat. 798, which is classified principally to chapter 55 (§ 4501 et seq.) of Title 50, War and National Defense. Title III of the Act is classified generally to subchapter II (§ 4531 et seq.) of chapter 55. For complete classification of this Act to the Code, see section 4501 of Title 50 and Tables. § 4659. Additional authorities (a) In general In carrying out the responsibilities of the De- partment of Commerce under this chapter, the Secretary may— (1) enter into agreements, including con- tracts, grants and cooperative agreements, and other transactions as may be necessary and on such terms as the Secretary considers appropriate; (2) make advance payments under agree- ments and other transactions authorized under paragraph (1) without regard to section 3324 of title 31; (3) require a person or other entity to make payments to the Department of Commerce upon application and as a condition for receiv- ing support through an award of assistance or other transaction; (4) procure temporary and intermittent serv- ices of experts and consultants in accordance with section 3109 of title 5; (5) notwithstanding section 3104 of title 5 or the provisions of any other law relating to the appointment, number, classification, or com- pensation of employees, make appointments of scientific, engineering, and professional per- sonnel, 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, except that the Secretary shall appoint not more than 25 per- sonnel under this paragraph; (6) with the consent of another Federal agen- cy, enter into an agreement with that Federal agency to use, with or without reimburse- ment, any service, equipment, personnel, or facility of that Federal agency; and (7) establish such rules, regulations, and pro- cedures as the Secretary considers appro- priate. (b) Requirement Any funds received from a payment made by a person or entity pursuant to subsection (a)(3) shall be credited to and merged with the ac- count from which support to the person or enti- ty was made 1 (c) Lead Federal agency and cooperating agen- cies (1) Definition In this subsection, the term ‘‘lead agency’’ has the meaning given the term in section 111 of NEPA (42 U.S.C. 4336e). (2) Option to serve as lead agency With respect to a covered activity that is a major Federal action under NEPA, and with respect to which the Department of Commerce is authorized or required by law to issue an au- thorization or take action for or relating to that covered activity, the Department of Com- merce shall have the first right to serve as the lead agency with respect to that covered ac- tivity under NEPA. (d) Categorical exclusions (1) Establishment of categorical exclusions Each of the following categorical exclusions is established for the National Institute of Standards and Technology with respect to a covered activity and, beginning on October 2, 2024, is available for use by the Secretary with respect to a covered activity: (A) Categorical exclusion 17.04.d (relating to the acquisition of machinery and equip-