FY2023 NDAA, Section 6505 ("Assessments of production of semiconductors by the People's Republic of China")

Summary

Begins discussing the phrase “appropriate committees of Congress” and what organizations are actually a part of this phrase when benign referred. Also defines the term “legacy semiconductor” in terms of the definition given in another legislation document.

Annually for 3 years after this act is passed, the Director of National Intelligence must submit an unclassified assessment report regarding China’s production of semiconductors through China’s firms and business sectors to the appropriate committees of Congress.

The Director of National Intelligence must meet with the heads of federal agencies to discuss the elements of the assessment. They must discuss the self-sufficiency of China in the fields of artificial intelligence, cloud computing, autonomous vehicles, and other newer-technological areas. They must discuss China’s access to intellectual property related to leading edge process nodes, including electronic design automation technology. They must discuss Chinese firms’s production of semiconductors that are not legacy conductors and stockpiling efforts of semiconductor manufacturing equipment. They must discuss the relative market share and its trends of Chinese semiconductor manufacturers at different process nodes. They must discuss the outside recruitment activity into Chinese semiconductors firms and the capability of the Chinese workforce in developing semiconductors that are not legacy semiconductors and relevant equipment.

Requires the Director to assess China's semiconductor production competitiveness and report to Congress annually.

SEC. 6505. ASSESSMENTS OF PRODUCTION OF SEMICONDUCTORS BY THE PEOPLE'S REPUBLIC OF CHINA.

(a) Definitions.--In this section: (1) Appropriate committees of congress.--The term ``appropriate committees of Congress'' means-- (A) the congressional intelligence committees; (B) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, the Committee on Commerce, Science, and Transportation, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and (C) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Financial Services, the Committee on Science, Space, and Technology, the Committee on Energy and Commerce, the Committee on Homeland Security, and the Committee on Appropriations of the House of Representatives. (2) Legacy semiconductor.--The term ``legacy semiconductor'' has the meaning given such term in section 9902(a)(6)(A) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4652(a)(6)(A)).

(b) In General.--Not later than 60 days after the date of the enactment of this Act, and annually thereafter for 3 years, the Director of National Intelligence shall submit to the appropriate committees of Congress an assessment of progress by the People's Republic of China in global competitiveness in the production of semiconductors by Chinese firms, including any subsidiary, affiliate, or successor of such firms.

(c) Consultation.--In carrying out subsection (b), the Director shall consult with the Secretary of Commerce and the heads of such other Federal agencies as the Director considers appropriate.

Includes assessment progress on China's semiconductor self-sufficiency, IP access, market share, recruitment, and workforce capability.

(d) Elements.--Each assessment submitted under subsection (b) shall include the following: (1) The progress of the People's Republic of China toward self-sufficiency in the supply of semiconductors, including globally competitive Chinese firms competing in the fields of artificial intelligence, cloud computing, autonomous vehicles, next-generation and renewable energy, advanced life sciences and biotechnology, and high-performance computing. (2) The progress of the People's Republic of China in developing indigenously or accessing foreign sources of intellectual property critical to the design and manufacturing of leading edge process nodes, including electronic design automation technology. (3) Activity of Chinese firms with respect to the production of semiconductors that are not legacy semiconductors, including any identified export diversion to evade export controls. (4) Any observed stockpiling efforts by Chinese firms with respect to semiconductor manufacturing equipment, substrate materials, silicon wafers, or other necessary inputs for semiconductor production. (5) An analysis of the relative market share of different Chinese semiconductor manufacturers at different process nodes and the estimated increase or decrease of market share by that manufacturer in each product category during the preceding year. (6) A comprehensive summary of recruitment activity of the People's Republic of China targeting semiconductor manufacturing engineers and managers from non- Chinese firms. (7) An analysis of the capability of the workforce of the People's Republic of China to design, produce, and manufacture of semiconductors that are not legacy semiconductors and relevant equipment.

(e) Form of Assessments.--Each assessment submitted under subsection (b) shall be submitted in unclassified form and include a classified annex.

(f) Additional Reporting.--Each assessment submitted under subsection (b) shall also be transmitted to the Secretary of Commerce, to inform, among other activities of the Department of Commerce, implementation of section 103 of the CHIPS Act of 2022 (Public Law 117-

1. and title XCIX of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651 et seq.).