(a) In general

Part I of the Export Control Reform Act of 2018 (50 U.S.C. 4811 et seq.) is amended by inserting after section 1758 the following:

1758A. Control of exports of advanced integrated circuits

(a) Definitions

In this section:

(1) Advanced integrated circuit or product

(A) In general

Subject to subparagraph (B), the term advanced integrated circuit means an integrated circuit, computer, or other product containing such a circuit—

(i)

classified under Export Control Classification Number 3A090 or 4A090 or a .z Export Control Classification Number on January 1, 2025; or

(ii)

that is functionally equivalent or substantially similar to a circuit, computer, or product described in clause (i); and

(iii)

that is designed or marketed for data centers.

(B) Authority to update definition

Beginning 24 months after the date of the enactment of this section, to keep pace with technological advancements in computing, the Under Secretary of Commerce for Industry and Security may revise the definition of advanced integrated circuit through notice in the Federal Register, so long as—

(i)

the revision poses no adverse impact on the national security of the United States; and

(ii)

the Under Secretary has consulted with the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the proposed change to the definition at least 30 days prior to making the change.

(2) Commerce control list

The term Commerce Control List means the list set forth in Supplement No. 1 to part 774 of the Export Administration Regulations.

(3) Country of concern

The term country of concern means—

(A)

a country listed in Country Group D:5 in Supplement No. 1 to part 740 of the Export Administration Regulations on January 1, 2025;

(B)

the Macau Special Administrative Region of the People’s Republic of China; or

(C)

the Hong Kong Special Administrative Region of the People’s Republic of China.

(4) Covered country

The term covered country means a country listed in Country Group D in Supplement No. 1 to part 740 of the Export Administration Regulations on January 1, 2025.

(5) Approved United States person

The term approved United States person means any United States person designated as an approved United States person pursuant to the regulations outlined in subsection (d)(2).

(b) License requirement

The Under Secretary of Commerce for Industry and Security shall require a license for the export, reexport, or in-country transfer of an advanced integrated circuit or product to a covered country.

(c) License policy for countries of concern

The Under Secretary of Commerce for Industry and Security shall deny a license for the export, reexport, or in-country transfer of an advanced integrated circuit or product to an entity that is primarily located or headquartered in, or the ultimate parent company of which is headquartered in, a country of concern.

(d) Exemption from certain license requirement for approved United States persons

(1) In general

The license requirement under subsection (b) shall not apply to the export, reexport, or in-country transfer of an advanced integrated circuit or product if the advanced integrated circuit or product—

(A)

is destined for a country that is not a country of concern; and

(B)

remains under the ownership and control of an approved United States person.

(2) Implementation

Not later than 90 days after the date of the enactment of this section, the Under Secretary of Commerce for Industry and Security shall prescribe regulations—

(A)

establishing clear standards and requirements a United States person is mandated to meet to obtain a designation as an approved United States person, which shall include—

(i)

a requirement that not more than 10 percent of the ultimate beneficial ownership of the United States person may be held, directly or indirectly, by any entity that primarily resides or is domiciled in a country of concern;

(ii)

physical security, cybersecurity, remote access security, and other measures designed to prevent the misuse, illicit access, illicit transfer, or diversion of advanced integrated circuits and products;

(iii)

robust know your customer standards; and

(iv)

annual audit or attestation requirements to ensure compliance with clauses (i), (ii), and (iii); and

(B)

describing the process by which the Under Secretary shall approve such a designation.

(e) Sunset

This section shall terminate on the date that is five years after the date of the enactment of this section.

(b) Clerical amendments

The John S. McCain National Defense Authorization Act for Fiscal Year 2019 is amended—