§4.Multilateral semiconductor technology supply chain coordination
This section directs the Secretary of State to coordinate with governments of countries maintaining significant capabilities in semiconductor technology research, design, manufacturing, materials, equipment, or subsystems and components to protect such technologies from acquisition by the Chinese Communist Party and other foreign adversaries of the U.S. and its allies and partners.
In pursuing this coordination, the Secretary must seek to achieve six objectives: (1) alignment of export controls on semiconductor manufacturing equipment (e.g., lithography systems, etching tools) and critical subcomponents; (2) expanded restrictions on design tools, intellectual property transfers, equipment servicing, and technical assistance; (3) harmonized controls on dual-use materials (e.g., photoresists, specialty gases); (4) joint monitoring, enforcement, and administration to prevent circumvention and backfilling; (5) information sharing on risks, end-user verification, and supply chain threats; and (6) trusted supplier networks for components and services.
If a cooperating country implements insufficient security measures to prevent transfers to countries of concern (as defined in 10 U.S.C. 4872(f)), the Secretary of State, in consultation with the Secretary of Commerce, must assess cooperation; explain deficiencies; within 21 days, request the Commerce Secretary to convene the Export Advisory Review Board to develop and execute a plan of action; and notify appropriate congressional committees within 30 days with routine updates. The Secretary of State must also recommend to the board enhanced Foreign Direct Product Rule restrictions (i.e., U.S. export controls on foreign-produced items using U.S.-origin technology, software, or equipment), Entity List (i.e., Bureau of Industry and Security restrictions) expansions for at-risk entities in the non-cooperating country, and steps to prevent backfilling of U.S. technology to restricted sectors.
Not later than 90 days after enactment and every 90 days thereafter, the Secretary of State must submit unclassified reports (with classified annexes if needed) to the House Committee on Foreign Affairs and the Senate Committees on Foreign Relations and Banking, Housing, and Urban Affairs detailing diplomatic engagement status, progress on objectives, non-cooperation determinations, and coordination effectiveness.