Semiconductor Controls Effectiveness Act

Summary#

This bill requires the Assistant Secretary of State for Intelligence and Research, working with the Commerce Department’s industry and security office and the Director of National Intelligence, to write a report within 360 days after the bill becomes law. The report must list and describe all U.S. export controls on semiconductors and semiconductor manufacturing equipment destined for the People’s Republic of China (PRC). For each control it must say what kind it is, when it started, whether other countries use it, and provide analysis with available data on the control’s goals and real-world impacts. The analysis must cover effects on the PRC’s military and surveillance, its ability to make advanced chips, its semiconductor industry and market share, PRC artificial intelligence capabilities, effects on U.S. company revenue (and whether that revenue moved to allies or PRC firms), and U.S. long-term technology leadership. The report must also assess whether foreign sources of similar items reduce the control’s effectiveness. It must identify controls that worked best, any controls that failed and why, and give recommendations to improve compliance, enforcement, and close diversion loopholes. The Assistant Secretary must consult federal agencies, U.S. semiconductor and advanced computing companies, and experts from academia and research organizations. The report must be submitted to and shared with specific congressional committees, be published in unclassified form on the State Department website, and may include a classified annex.

What it means for you#

• A public, data-driven report about U.S. semiconductor export controls to the PRC will be prepared and posted online within about a year of enactment.
• The report will explain which controls exist, how they are intended to work, and what evidence shows about their real-world effects.
• It may include recommendations that could lead to changes in how export controls are designed or enforced.
• Federal agencies, U.S. companies in the semiconductor and advanced computing fields, and outside experts will be asked to give information to the authors of the report.

Expenses#

No publicly available information.

Proponents' View#

The bill’s text says supporters believe export controls on semiconductor tools and advanced chips are critical to U.S. national security and the competition over artificial intelligence with the PRC. It says the controls should be reviewed with rigorous, data-driven analysis. Supporters also say public disclosure of real-world data and impact analysis helps the public and Congress understand national security, foreign policy, and economic effects.

Opponents' View#

No publicly available information.