Multilateral semiconductor technology supply chain coordination

(a) In general The Secretary of State shall coordinate with governments of countries that maintain significant capabilities in semiconductor technology research, design, manufacturing, materials, equipment, or equipment subsystems and components to establish coordinated and expanded approaches for protecting critical semiconductor technologies from acquisition by the Chinese Communist Party and other foreign adversaries of the United States and its allies and partners. (b) Coordination objectives In carrying out subsection (a), the Secretary of State shall seek to achieve— (1) alignment of export control policies regarding semiconductor technology manufacturing equipment, including lithography systems, deposition equipment, etching tools, thermocompression bonding equipment, resist processing tools, chemical mechanical planarization tools, cleaning tools, handling tools, assembly, packaging, and test tools, and inspection systems and the critical subcomponents needed to produce such equipment; (2) expanded restrictions on semiconductor technology design tools, intellectual property transfers, equipment servicing, and technical assistance that could enable indigenous semiconductor technology development capabilities in countries of concern; (3) harmonized approaches to controlling dual-use semiconductor technology materials, including photoresists, specialty gases, and advanced substrates; (4) joint monitoring, enforcement, and administration mechanisms to prevent circumvention of semiconductor technology controls through third-country entities as well as prevent foreign backfilling of restricted items; (5) information sharing regarding semiconductor technology transfer risks, end-user verification, and supply chain security threats; and (6) establishment of trusted supplier networks for critical semiconductor technology components and manufacturing services. (c) Consequences for non-Cooperation (1) Assessment of cooperation The Secretary of State, in consultation with the Secretary of Commerce, shall regularly assess the extent to which countries described in subsection (a) are implementing measures consistent with United States policy described in section 3. (2) Determination of insufficient security measures If the Secretary of State determines that a country described in subsection (a) is not implementing security measures sufficient to fully prevent semiconductor technology transfer to countries of concern, the Secretary shall— (A) provide a detailed explanation of the specific deficiencies in the country’s semiconductor technology protection measures; (B) not later than 21 days after making the determination, request the Secretary of Commerce to convene a meeting of the Export Advisory Review Board to identify and execute a plan of action to address the insufficient security measures; and (C) not later than 30 days after making the determination, notify the appropriate congressional committees of the determination and provide routine updates on the Export Advisory Review Board meeting request and plan of action described in subparagraph (B). (3) Enhanced foreign direct product rule application In carrying out the process described in paragraph (2)(B) with respect to a country the Secretary determines under paragraph (2) is not implementing security measures sufficient to fully prevent semiconductor technology transfer to countries of concern, the Secretary of State shall provide to the Export Advisory Review Board— (A) recommendations for the application of Foreign Direct Product Rule restrictions to semiconductor technology produced in the country that incorporate United States-origin technology, software, or equipment; (B) recommended entities for the expansion of Entity List designations for semiconductor technology supply chain companies or research institutions in the country that pose technology transfer risks; and (C) guidance on what additional steps may be needed to prevent foreign backfilling of United States technology in restricted sectors or entities in countries of concern. (d) Reports (1) In general Not later than 90 days after the date of the enactment of this Act, and every 90 days thereafter, the Secretary of State shall submit to the appropriate congressional committees a report on— (A) the status of diplomatic engagement with key semiconductor technology-producing countries; (B) progress toward achieving the coordination objectives specified in subsection (b); (C) any determinations made under subsection (c) that a country is not implementing security measures sufficient to fully prevent semiconductor technology transfer to countries of concern; and (D) the effectiveness of multilateral coordination in preventing semiconductor technology transfer to countries of concern. (2) Form The report required by paragraph (1) shall be submitted in unclassified form but may include a classified annex.