The Securing Semiconductor Supply Chains Act directs the Executive Director of SelectUSA to work with state-level economic development organizations to attract foreign direct investment (FDI) into U.S. semiconductor-related manufacturing and production. The act defines SelectUSA and sets out a process to gather input from state actors, identify barriers to investment, and develop coordinated recommendations with other federal agencies and allied partners.
A two-year report to Congress then documents the input received, current activities, and potential strategies to expand investment and secure the semiconductor supply chain. No new funds are authorized; the effort must use existing resources.
At a Glance
What It Does
The Act requires the Executive Director of SelectUSA to solicit comments from state-level economic development organizations within 180 days of enactment and to develop recommendations on how to increase foreign direct investment in semiconductor-related manufacturing. It also requires a two-year follow-up report detailing the engagement, activities, and strategies to expand investment and security.
Who It Affects
State-level economic development organizations, SelectUSA, and the federal interagency workforce coordinating investment. It also touches semiconductor manufacturers, suppliers, and local communities near potential investment sites.
Why It Matters
By coordinating federal and state efforts to attract FDI in semiconductor production, the bill aims to strengthen domestic manufacturing capacity and resilience of the supply chain, while embedding safeguards to prevent foreign adversaries from benefiting from U.S. investment efforts.
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What This Bill Actually Does
The bill centers on strengthening the United States semiconductor supply chain by expanding foreign direct investment in domestic semiconductor manufacturing. It designates SelectUSA as the lead coordination body and requires it to operate in concert with state-level economic development organizations to identify barriers, outline how to attract more foreign capital, and address implementation gaps that could hinder investment.
The findings emphasize the critical role semiconductors play in the economy and national security, noting the global and complex nature of supply chains and the need for onshoring, reshoring, or diversification of vulnerable segments.
Within 180 days, the Executive Director of SelectUSA must solicit input from state-level economic development organizations on actionable steps to boost investment, barriers to investment, public opportunities, and resource gaps. The plan must also outline how SelectUSA can work, either alone or in partnership with state entities, to increase investment while ensuring allied countries are the primary beneficiaries and preventing adversaries from exploiting U.S. investment initiatives.Two years after enactment, the Executive Director, working with the Federal Interagency Investment Working Group, must deliver a report to Congress assessing the state-level feedback, outlining ongoing activities, and presenting strategies to realize increased investment and a secure semiconductor supply chain.
The bill explicitly requires no new funding; existing resources must support these activities.
The Five Things You Need to Know
The Executive Director of SelectUSA must seek input from state-level economic development organizations within 180 days.
The bill requires developing recommendations to increase foreign direct investment in semiconductor manufacturing.
The recommendations must consider barriers, opportunities, and resource gaps faced by state organizations.
A two-year report to Congress will review feedback, describe activities, and propose investment strategies.
No new funds are authorized; the act must be carried out with existing appropriations.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short Title
This section establishes the Act’s formal name, the Securing Semiconductor Supply Chains Act, setting the stage for the programmatic purpose of coordinating investment in semiconductor manufacturing.
SelectUSA Defined
This section defines SelectUSA as the program within the Department of Commerce established by Executive Order 13577, ensuring a clear institutional home for the coordination of investment efforts described in the Act.
Findings
This section provides the rationale: semiconductors are critical to the economy and national security; the supply chain is global and fragile, necessitating onshoring, reshoring, or diversification; and federal leverage of foreign direct investment should be deployed to grow domestic capacity while safeguarding security.
Coordination with State-Level Economic Development Organizations
Within 180 days, the Executive Director must solicit comments from state-level EDOs to review how the federal government can support more FDI in semiconductor-related production, identify barriers, public opportunities, and resource gaps. It also instructs developing recommendations on how SelectUSA can increase investment, including working with allied countries to ensure adverse entities do not benefit from U.S. investment efforts.
Report on Increasing Foreign Direct Investment
Not later than two years after enactment, the Executive Director, in coordination with the Federal Interagency Investment Working Group, must submit a report to Congress detailing the state-level feedback, ongoing activities, and strategies to increase investment and secure the semiconductor supply chain, including agency collaboration and state-level implementation.
No Additional Funds
This section states that no new funds are authorized for implementing the Act; SelectUSA must execute its duties using amounts already available to the agency.
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Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- State-level economic development organizations gain clearer pathways and potential federal support to attract semiconductor investment, tying local strategies to national goals.
- SelectUSA gains a clearer mandate and structured engagement with states, potentially increasing successful investment outcomes.
- U.S. semiconductor manufacturers and suppliers benefit from a more robust pipeline of foreign investment that can expand domestic capacity and resilience.
- Local communities hosting new semiconductor facilities can see job creation and economic activity from expanded investment.
- Allied partner governments may benefit from a more secure and diversified supply chain with coordinated investment as a shared objective.
Who Bears the Cost
- SelectUSA and participating federal agencies will devote time and resources to outreach, data collection, and coordination within existing budgets.
- State-level economic development organizations will need staff time to respond to inquiries, participate in consultations, and implement recommended actions.
- Any administrative work required to align federal-state efforts may divert resources from other state programs without additional funding.
- Private sector actors may experience indirect costs associated with longer coordination cycles or more rigorous investment screening processes, though the bill does not impose new direct financial obligations on them.
Key Issues
The Core Tension
Balancing aggressive attraction of foreign investment for domestic semiconductor capacity with the security imperative of preventing adversaries from benefiting from U.S. investment efforts.
The bill creates a cooperative framework, not a funding program. Its effectiveness hinges on cooperative implementation across multiple agencies and states, the willingness of state actors to engage, and the quality of the recommendations developed.
Because it relies on existing resources, its success will depend on how efficiently SelectUSA and partner agencies reallocate time and attention to semiconductor investment initiatives. A key tension is the need to accelerate investment while maintaining rigorous safeguards against adversarial influence.
Questions remain about how to measure success, what metrics to apply to state-level engagement, and how to monitor the impact of any recommended actions once implemented.
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