---
kind: "section"
citation: "15 U.S.C. § 4602"
title: "15"
title_heading: "Commerce and Trade"
number: "4602"
heading: "Grants to Sematech"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/4602"
units:
  - "Chapter 72 — Semiconductor Research"
  - "Subchapter I — Cooperative Research Program"
---

# §4602. Grants to Sematech

- (a) **Authority to make grants—** The Secretary of Defense shall make grants, in accordance with [section 6304 of title 31](/usc/31/6304.md), to [Sematech](/usc/15/4601.md?p=c-2) in order to defray expenses incurred by [Sematech](/usc/15/4601.md?p=c-2) in conducting research on and development of semiconductor manufacturing technology. The grants shall be made in accordance with a memorandum of understanding entered into under [subsection (b)](#b).
- (b) **Memorandum of understanding—** The Secretary of Defense shall enter into a memorandum of understanding with [Sematech](/usc/15/4601.md?p=c-2) for the purposes of this subchapter. The memorandum of understanding shall require the following:
  - (1) That [Sematech](/usc/15/4601.md?p=c-2) have—
    - (A) a charter agreed to by all representatives of the semiconductor industry that are participating members of [Sematech](/usc/15/4601.md?p=c-2); and
    - (B) an annual operating plan that is developed in consultation with the Secretary of Defense and the [Semiconductor Technology Council](/usc/15/4601.md?p=c-1).
  - (2) That the total amount of funds made available to [Sematech](/usc/15/4601.md?p=c-2) by Federal, [State](/usc/15/15g.md?p=2), and [local government](/usc/15/34.md?p=1) agencies for any fiscal year for the support of research and development activities of [Sematech](/usc/15/4601.md?p=c-2) under this section may not exceed 50 percent of the total cost of such activities.
  - (3) That [Sematech](/usc/15/4601.md?p=c-2), in conducting research and development activities pursuant to the memorandum of understanding, cooperate with and draw on the expertise of the national laboratories of the Department of Energy and of colleges and universities in the United States in the field of semiconductor manufacturing technology.
  - (4) That an independent, commercial auditor be retained (A) to determine the extent to which the funds made available to [Sematech](/usc/15/4601.md?p=c-2) by the United States for the research and development activities of [Sematech](/usc/15/4601.md?p=c-2) have been expended in a manner that is consistent with the purposes of this subchapter, the charter of [Sematech](/usc/15/4601.md?p=c-2), and the annual operating plan of [Sematech](/usc/15/4601.md?p=c-2), and (B) to submit to the Secretary of Defense, [Sematech](/usc/15/4601.md?p=c-2), and the Comptroller General of the United States an annual report containing the findings and determinations of such auditor.
  - (5) That (A) the Secretary of Defense be permitted to use intellectual property, trade secrets, and technical data owned and developed by [Sematech](/usc/15/4601.md?p=c-2) in the same manner as a participant in [Sematech](/usc/15/4601.md?p=c-2) and to transfer such intellectual property, trade secrets, and technical data to Department of Defense contractors for use in connection with Department of Defense requirements, and (B) the Secretary not be permitted to transfer such property to any [person](/usc/15/7a.md?p=6) for commercial use.
  - (6) That [Sematech](/usc/15/4601.md?p=c-2) take all steps necessary to maximize the expeditious and timely transfer of technology developed and owned by [Sematech](/usc/15/4601.md?p=c-2) to the participants in [Sematech](/usc/15/4601.md?p=c-2) in accordance with the [agreement](/usc/15/7a.md?p=2) between [Sematech](/usc/15/4601.md?p=c-2) and those participants and for the purpose of improving manufacturing productivity of United States semiconductor firms.
- (c) **Construction of memorandum of understanding—** The memorandum of understanding entered into under [subsection (b)](#b) shall not be considered to be a contract for the purpose of any law or regulation relating to the formation, content, and [administration](/usc/15/636e.md?p=1) of contracts awarded by the Federal Government and subcontracts under such contracts, including [chapter 271](/usc/10/chstA/ptV/sptD/ch271.md) of title 10, section 719 of the Defense Production Act of 1950 (50 U.S.C. App. 2168),[^1] and the Federal Acquisition Regulations, and such provisions of law and regulation shall not apply with respect to the memorandum of understanding.
- (d) **Funding for FY88—** Of the amounts appropriated to the Defense Agencies for fiscal year 1988 for research, development, test, and evaluation, $100,000,000 may be obligated only to make grants under this section.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 100–180, div. A, title II, § 272, Dec. 4, 1987, 101 Stat. 1068; Pub. L. 103–160, div. A, title II, § 263(c)(2), Nov. 30, 1993, 107 Stat. 1610; Pub. L. 117–81, div. A, title XVII, § 1702(e)(7), Dec. 27, 2021, 135 Stat. 2157.)

## Notes

### Editorial Notes

### References in Text

Section 719 of the Defense Production Act of 1950, referred to in subsec. (c), is section 719 of act Sept. 8, 1950, ch. 932, title VII, as added Pub. L. 91–379, title I, § 103, Aug. 15, 1970, 84 Stat. 796, which was formerly classified to section 2168 of the former Appendix to Title 50, War and National Defense, prior to repeal by Pub. L. 100–679, § 5(b), Nov. 17, 1988, 102 Stat. 4063.

### Amendments

2021—Subsec. (c). Pub. L. 117–81 substituted “chapter 271” for “section 2306a”.

1993—Subsec. (b)(1)(B). Pub. L. 103–160 substituted “Semiconductor Technology Council” for “Advisory Council on Federal Participation in Sematech”.