S. 5400 — STRIDE Act

This section expresses the sense of Congress that the global semiconductor technology supply chain is critical to United States national security and that coordinated action with allies is required to counter Chinese Communist Party efforts to dominate the industry through nonmarket practices, export control violations, economic espionage, military-civil fusion, and predatory investment. It further states that unilateral U.S. export controls, including the Foreign Direct Product Rule, have proven effective when paired with multilateral coordination.

This section establishes the policy of the United States to maintain technological leadership in semiconductor research, design, manufacturing, and materials; prevent foreign adversaries from controlling global supply chain chokepoints; coordinate with allies on technology protection; ensure United States-origin technology and intellectual property do not support the Chinese Communist Party’s military modernization, human rights abuses, or technological dominance; and promote resilient, secure semiconductor supply chains among United States allies and partners.

This section directs the Secretary of State to coordinate with governments of countries possessing significant semiconductor capabilities to align export controls on manufacturing equipment, expand restrictions on design tools and intellectual property transfers, harmonize controls on materials such as photoresists and specialty gases, establish joint monitoring and enforcement mechanisms, share information on transfer risks, and create trusted supplier networks to prevent acquisition by the Chinese Communist Party and other foreign adversaries. It requires regular assessments of foreign cooperation, notifications to appropriate congressional committees within 30 days of any determination of insufficient security measures, and recommendations for Foreign Direct Product Rule application and Entity List expansions. It mandates reports to those committees every 90 days on diplomatic progress and effectiveness.

This section defines terms used throughout the Act, including appropriate congressional committees, countries of concern, the Entity List maintained by the Bureau of Industry and Security, the Foreign Direct Product Rule for U.S. export controls on foreign-produced items, and semiconductor technology encompassing integrated circuits, manufacturing equipment, design software, materials, and related components.