Section 1 Short title
This Act may be cited as the “No Chips for China Act”.
No Chips for China Act
A BILL
To prohibit the material expansion of semiconductor manufacturing in the People’s Republic of China with Federal financial assistance, and for other purposes.
Sec. 2 Prohibition
Section 9902(a)(6)(C) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4652(a)(6)(C)) is amended to read as follows:
“(C) Required agreement
“(i) In general—On or before the date on which the Secretary awards Federal financial assistance to a covered entity under this section, the covered entity shall enter into an agreement with the Secretary specifying that, during the 10-year period beginning on the date of the award, the covered entity shall not engage in any significant transaction, as defined in the agreement, involving either—
“(I) the material expansion of semiconductor manufacturing capacity in the People’s Republic of China or any other foreign country of concern; or
“(II) the transfer, export, or sale of any semiconductor manufacturing capacity able to produce semiconductors with sub-14 nanometer processes to entities located in or affiliated with the People’s Republic of China.
“(ii) Exceptions—An agreement entered into pursuant to clause (i) shall not apply to any covered entity which has obtained an export license from the Secretary of Commerce.”