HR 5289
Semiconductor Sovereignty Act
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Bill overview
The Semiconductor Sovereignty Act directs the Secretary of Commerce to analyze the trends in semiconductor manufacturing and research, particularly concerning offshoring and foreign investment. The goal is to identify strategies to bolster domestic production, strengthen national security, and reduce reliance on foreign entities, especially those considered adversaries. The bill requires the Secretary to report findings and recommendations to Congress and the public, and to periodically update these strategies.
Key provisions
- Requires the Secretary of Commerce to identify critical inputs for semiconductor manufacturing and research.
- Directs the Secretary to analyze trends in offshoring and reshoring of semiconductor production.
- Mandates assessments of the impact of offshore manufacturing on national economy, security, and supply chains.
- Calls for recommendations to disincentivize offshoring and increase domestic production through incentives.
- Requires the Secretary to monitor acquisitions of domestic assets by foreign entities.
- Specifies reporting requirements to Congress and the public, including updates to strategies.
- Prohibits the inclusion of personally identifiable information in reports.
- Establishes a process for annual review and updating of strategies.
Who is affected
- Semiconductor manufacturers and researchers
- Federal Government agencies
- U.S. businesses reliant on semiconductors
- Foreign governments (specifically adversaries like China, Russia, and North Korea)
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
James C. [R-GU-At Large] Moylan
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119th CONGRESS — 1st Session
H. R. 5289
IN THE HOUSE OF REPRESENTATIVES
A BILL
To direct the Secretary of Commerce to submit reports on strategies regarding the manufacturing of, and research relating to, semiconductors and other similar technologies, and for other purposes.
This Act may be cited as the Semiconductor Sovereignty Act
.
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.
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.
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.
Allies and partners of the United States.
Geopolitically vulnerable markets, including Taiwan.
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.
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 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.