H.R. 6058: Semiconductor Technology Resilience, Integrity, and Defense Enhancement Act

This bill is known as the Semiconductor Technology Resilience, Integrity, and Defense Enhancement Act, or the STRIDE Act. Its primary aim is to enhance the security and integrity of the global semiconductor technology supply chain, particularly in relation to the influence and actions of foreign adversaries, especially the Chinese Communist Party.

Key Objectives

• To maintain and enhance the technological leadership of the United States and its allies in semiconductor research, design, manufacturing, and materials.
• To prevent adversarial forces from gaining control over crucial points in the semiconductor supply chain.
• To collaborate with allied countries to improve protections for semiconductor technologies.
• To ensure that American technology does not contribute to military advancements or human rights violations by adversaries.
• To promote secure and resilient semiconductor supply chains among U.S. partners.

Multilateral Coordination

The bill requires the Secretary of State to work with countries that have significant semiconductor technology capabilities. The goal is to create coordinated approaches to protect critical technologies from foreign acquisition. Specific activities include:

• Aligning export control policies concerning semiconductor manufacturing equipment and tools.
• Implementing restrictions on technology design tools and intellectual property that could help adversaries develop their own technology.
• Monitoring and preventing third-party circumvention of semiconductor controls.
• Sharing information regarding technology transfer risks and establishing a network of trusted suppliers.

Consequences for Non-Cooperation

The bill outlines a process to assess the cooperation of allied nations in protecting semiconductor technology. If a country is found lacking in this cooperation, the following actions will be taken:

• Identify specific deficiencies in their technology protection measures.
• Request a meeting of the Export Advisory Review Board to develop an action plan to address these deficiencies.
• Notify Congress about the findings and plans for improvement.
• Enhance application of the Foreign Direct Product Rule to restrict products that could be produced in non-cooperating countries using U.S. technology.

Reporting Requirements

The Secretary of State is required to report to Congress every 90 days on:

• The status of diplomatic efforts with major semiconductor-producing countries.
• Progress on achieving the coordination objectives outlined in the bill.
• Any decisions regarding insufficient cooperation from allied nations.
• The effectiveness of the coordinated efforts in preventing technology transfer to concerning nations.

Definitions

The bill provides specific definitions for terms, including:

• Countries of Concern: Refers to nations identified as potential threats according to existing security classifications.
• Entity List: A list maintained by the U.S. Department of Commerce that identifies organizations that pose risks of technology transfer.
• Foreign Direct Product Rule: A regulation that governs the export of products made using U.S. technology.
• Semiconductor Technology: Covers a range of items including integrated circuits, semiconductor manufacturing equipment, design software, materials, and essential components for manufacturing processes.

Relevant Companies

• INTC (Intel Corporation): Intel, as a leading semiconductor manufacturer, could be directly impacted by new export restrictions and requirements for cooperation with allied nations.
• TSM (Taiwan Semiconductor Manufacturing Company): TSMC, a major player in semiconductor fabrication, may face new compliance challenges with U.S. export controls.
• NVDA (NVIDIA Corporation): NVIDIA, which designs graphics processing units and other semiconductor devices, may need to navigate additional regulation on technology transfers.
• AMD (Advanced Micro Devices, Inc.): AMD might also see effects on its supply chain and export activities related to semiconductor technology.