HR5289-119

1. Short title This Act may be cited as the Semiconductor Sovereignty Act.

2. Reports on strategies regarding the manufacturing of, and research relating to, semiconductors and other similar technologies Not later than 240 days after the date of the enactment of this Act, the Secretary of Commerce, acting through the Under Secretary of Commerce for Industry and Security, shall carry out the following: To the extent practicable, identify the following: The critical and foundational inputs for semiconductors and other similar technologies, including the following: Tools for the manufacturing of, and research relating to, such semiconductors and technologies, including the following: Equipment for photolithography, including photomasks. Software. The processes for such manufacturing and research, including the following: Designing. Packaging. The minerals, gases, and other chemical substances utilized in such manufacturing and research. The supply chains for such minerals, gases, and substances. The trends with respect to the following: The offshoring of such manufacturing and research from January 1, 1990, to such date of enactment. Any reshoring of such offshored manufacturing and research. Partnerships between domestic entities and foreign entities for such inputs. Investments by such entities for the domestic manufacturing of, and research relating to, such semiconductors and technologies. Each location to which such manufacturing and research is being offshored. The bottlenecks with respect to the following: Such manufacturing and research. The international trade of such semiconductors and technologies. The role of foreign nationals who receive in the United States an education or work experience in the manufacturing of, and research relating to, such semiconductors and technologies, and subsequently work for foreign entities, including adversaries of the United States, in fields relating to such semiconductors and technologies. The role of private sector officials and public sector officials who are American and work for such foreign entities. The domestic assets, including intellectual property, for such manufacturing and research that such foreign entities have acquired, including by means of a bankruptcy. The domestic entities and foreign entities that have received funding or other incentives from the Federal Government, including by means of the CHIPS Act of 2022 (division A of Public Law 117–167), for the domestic manufacturing of, and research relating to, such semiconductors and technologies and, subsequent to such receipt, have engaged in the offshoring of such manufacturing and research. Based upon such identifications, determine the trends in such offshore manufacturing and research from such date of enactment to a date that is not earlier than 30 years after such date of enactment. Conduct an assessment of the implications to or on, as the case may be, the following as a result of such offshore manufacturing and research: The national economy. National security. The supply chains of the United States for such semiconductors and technologies. Allies and partners of the United States. Adversaries of the United States, including the Democratic People’s Republic of Korea, the Islamic Republic of Iran, the People’s Republic of China, and the Russian Federation, and the proxies of such adversaries. Geopolitically vulnerable markets, including Taiwan. Based upon such determination and assessments, identify and, as appropriate, recommend strategies for the following: Disincentivizing such offshore manufacturing and research. Increasing, including by means of tax incentives, subsidies, and the attraction and retention of foreign human capital, the domestic manufacturing of, and research relating to, such semiconductors and technologies. Strengthening the long-term competitiveness of the United States with respect to such semiconductors and technologies as a result of so increasing such domestic manufacturing and research. Strengthening governmental oversight of acquisitions described in subparagraph (A)(vii). Reducing the incidence of such acquisitions. Submit to Congress and publish in the Federal Register a report that includes information relating to the following: The determination made pursuant to subparagraph (B). The assessments conducted pursuant to subparagraph (C). Each strategy identified pursuant to subparagraph (D). Each strategy recommended pursuant to such subparagraph and, for each such strategy, recommendations on policy to implement such strategy. The Secretary of Commerce may not include in the report under paragraph (1) personally identifiable information of the foreign nationals described in subparagraph (A)(v) of such paragraph or the officials described in subparagraph (A)(vi) of such paragraph. Not later than one year after the report under subsection (a) is submitted and annually thereafter, the Secretary of Commerce, acting through the Under Secretary of Commerce for Industry and Security, shall determine whether the strategies submitted in such report are outdated. If the Secretary of Commerce, pursuant to paragraph (1) or (3), as the case may be, makes a determination in the affirmative pursuant to either of such paragraphs, the Secretary shall submit to Congress and publish in the Federal Register a report that includes information relating to updated strategies. If a report is submitted pursuant to paragraph (2), the Secretary of Commerce, not later than one year after such submission and annually thereafter, shall make a determination described in paragraph (1). In carrying out this section, the Secretary of Commerce, acting through the Under Secretary of Commerce for Industry and Security, shall consult with the heads of other Federal agencies and departments, as appropriate. In this section, the term foreign entity means a corporation, partnership, or other entity that satisfies any of the following requirements: Is organized under the laws of a foreign country. Has a principal place of business located outside of the United States.