This bill directs the Executive Director of SelectUSA to solicit comments from State-level economic development organizations within 180 days about barriers, opportunities, and resource gaps for attracting foreign direct investment (FDI) into semiconductor-related manufacturing and production. It also requires SelectUSA to produce a report to congressional commerce and energy committees within two years outlining those comments, current activities, and recommended strategies—including coordination with other federal agencies and state partners—to increase FDI in targeted semiconductor segments.
The statute is procedural and narrowly focused: it creates a formal information‑gathering and planning obligation for SelectUSA rather than authorizing grants or new spending. For practitioners, the bill matters because it converts ad hoc outreach into a time‑bound federal process that will surface state needs, propose federal–state implementation options, and explicitly require consideration of supplier segments (fabrication, advanced packaging, materials/equipment) and investor nationality risks tied to “foreign adversaries.” The law also contains an explicit no‑new‑funds clause, so its effects will hinge on existing agency resources and interagency leverage rather than fresh appropriations.
At a Glance
What It Does
The bill requires SelectUSA to solicit input from State economic development organizations within 180 days on how to increase FDI into semiconductor manufacturing and to develop recommendations for federal‑state action. It then directs SelectUSA to submit a two‑year report to House and Senate committees summarizing comments, current activities, and strategies for boosting investment while excluding investments by specified foreign adversaries.
Who It Affects
Primary targets are State-level economic development organizations, SelectUSA and the Department of Commerce, and semiconductor manufacturers seeking site selection or capital investment. Secondary audiences include other federal agencies that work on industrial policy or export controls and state and local officials competing for FDI in fabrication, advanced packaging, and semiconductor materials/equipment sectors.
Why It Matters
This law formalizes a federal conduit—SelectUSA—between state development offices and national strategy on semiconductor FDI without new appropriations. The statutory timelines and the requirement to consider investor nationality create pressure for concrete, actionable recommendations that could influence CHIPS-era subsidies, permitting priorities, and where private investment flows land.
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What This Bill Actually Does
The Act centers on SelectUSA as the federal convenor to pull state economic-development offices into a structured conversation about attracting foreign investment for vulnerable parts of the semiconductor supply chain. Within 180 days SelectUSA must solicit state comments on what federal support would help increase investment, what barriers states face, public opportunities they can offer to attract investors, and any resource gaps preventing them from competing effectively for semiconductor projects.
That solicitation is not merely consultative: SelectUSA must take the input and develop recommendations for how it can increase such investment on its own or in partnership with states. The bill also requires SelectUSA to explicitly consider how to work with U.S. allies and partners—and to ensure that entities designated as “foreign adversaries” under an existing statutory definition do not gain from these efforts—tying FDI outreach to national‑security screening concerns.Within two years SelectUSA must report to the Senate Committee on Commerce, Science, and Transportation and the House Committee on Energy and Commerce.
The report must review the state comments, describe SelectUSA’s ongoing activities to attract semiconductor FDI, and assess strategies that leverage other federal agencies and state partners to boost investment and secure supply chains. Finally, the Act disclaims any authorization for additional appropriations, meaning SelectUSA must work within existing budgets to fulfill the new obligations.
The Five Things You Need to Know
SelectUSA must solicit written comments from State-level economic development organizations within 180 days identifying barriers, public opportunities, and resource gaps for semiconductor-related FDI.
The bill specifies semiconductor segments of interest—fabrication, advanced packaging, and materials/equipment—and asks states to target recommendations accordingly.
SelectUSA must produce a comprehensive report to Congressional commerce/energy committees within two years that includes the solicited comments, a description of current SelectUSA activities, and recommended strategies for increasing FDI.
The statute requires SelectUSA to consider working with allied countries while preventing entities listed as “foreign adversaries” under the Secure and Trusted Communications Networks Act definition from benefiting from these investment efforts.
No additional funds are authorized; SelectUSA must carry out the solicitation, coordination, and reporting using existing resources.
Section-by-Section Breakdown
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Short title
Names the measure the "Securing Semiconductor Supply Chains Act of 2025." This has no procedural effect but signals congressional intent to link FDI outreach to supply‑chain resilience in legislative and regulatory discussions.
Definition of SelectUSA
Provides a targeted definition tying the statutory requirements to the existing SelectUSA program at the Department of Commerce (established by Executive Order No. 13577). That reference fixes responsibility with an existing office rather than creating a new entity, which matters because authority and staffing reside inside Commerce rather than in an interagency board.
Findings
Sets out Congress's rationale—semiconductors are economically and strategically critical, supply chains are global and vulnerable, and FDI can be leveraged to onshore or diversify production. While non‑binding, the findings frame later obligations and may guide how SelectUSA and agencies prioritize the segments and risks the law emphasizes.
Solicitation of state input and scope of topics
Requires the Executive Director of SelectUSA to solicit comments from state economic development organizations within 180 days. The solicitation must ask states to review federal actions to boost FDI, identify barriers and public opportunities to attract investment, and disclose resource gaps. It also instructs states to supply recommendations on how SelectUSA can increase investment independently or with states, and how to coordinate with allies while excluding designated foreign adversaries—embedding investor‑screening considerations into routine outreach.
Two‑year report to Congress
Mandates a report to specific Congressional committees within two years describing the comments received, SelectUSA's current FDI activities, and an assessment of strategies—including interagency cooperation and state partnership options—to increase FDI and secure semiconductor supply chains. The report function creates a deliverable that committees can use to shape oversight, programmatic changes, or follow‑on legislation.
No additional funds
States explicitly that the Act authorizes no new appropriations. Practically, this limits the implementation to existing SelectUSA and Commerce resources or to activities driven by partner agencies and states; it raises immediate questions about capacity and prioritization within the current budget.
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Explore Trade in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- State economic development organizations — the law elevates their role, forcing federal engagement and giving them a formal channel to market state incentives, identify gaps, and propose joint strategies to attract semiconductor FDI.
- U.S. semiconductor manufacturers and domestic foundries — potential increase in targeted FDI, supply‑chain projects, and site selection support could improve domestic capacity for fabrication, packaging, and materials sourcing.
- Allied countries and friendly investors — the statute invites coordination with allies, creating clearer pathways for investment from partner nations seeking to relocate or expand semiconductor operations in the U.S.
Who Bears the Cost
- SelectUSA and Department of Commerce staff — the program must run the solicitation, analyze responses, coordinate interagency work, and prepare a two‑year report without new appropriations, increasing workload within existing budgets.
- State economic development offices with limited capacity — responding substantively within the 180‑day window and participating in follow‑up work will require staff time and data collection that some states may have to reallocate from other priorities.
- Potential foreign investors designated as "foreign adversaries" — the bill requires excluding such entities from benefiting from these efforts, which may block or complicate investment opportunities from certain countries and reduce the pool of capital available to states.
Key Issues
The Core Tension
The central dilemma is getting faster, larger foreign investment into sensitive segments of the semiconductor supply chain while deliberately excluding investment tied to designated foreign adversaries: the first goal requires openness and speed to attract mobile capital, the second requires scrutiny and constraints that can slow or scare off investors. The bill delegates the problem to SelectUSA and states without funding or a clear screening tool, forcing a trade‑off between urgency, security, and the practical limits of existing agency capacity.
The Act is procedural and intentionally narrow: it creates a mandated consultation and a reporting obligation but does not authorize grants, regulatory changes, or new financing mechanisms. That design keeps federal involvement light on paper but shifts the burden of substance and follow‑through onto SelectUSA, other federal agencies, and state partners.
Implementation will therefore hinge on how much operational capacity agencies reallocate to this task and whether Congress follows up with programmatic funding or statutory changes based on the report.
A second tension arises between attracting broad FDI and excluding investments by entities tied to defined "foreign adversaries." The bill references an existing statutory definition, but it does not create a screening mechanism, escalation process, or clarity about how to treat intermediary investors and complex ownership structures. States and SelectUSA will face practical challenges reconciling aggressive investor recruitment with national‑security cautions, especially where potential investors have mixed ownership or operate through third‑country vehicles.
Finally, the absence of metrics or benchmarks in the bill means the two‑year report could be descriptive rather than prescriptive; Congress and stakeholders may disagree about what counts as success and which recommendations require new resources or legal authority to implement.
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