Securing Semiconductor Supply Chains Act
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The bill would require the SelectUSA program at the Commerce Department to consult state economic development organizations on ways to attract foreign investment into U.S. semiconductor manufacturing, and to report the findings to Congress within two years.
It authorizes no new funding, so the effort would rely on outreach, coordination, and reporting rather than new grants or incentives to bolster the domestic chip supply chain.
What this bill would do
What it would do
The bill would direct SelectUSA, the Commerce Department program that coordinates federal efforts to attract business investment, to solicit comments from state-level economic development organizations within 180 days of enactment. Those comments would cover federal efforts to increase foreign direct investment in semiconductor manufacturing, barriers to that investment, opportunities states have identified, and resource gaps states face, along with recommendations for how SelectUSA could increase investment and ensure foreign adversaries do not benefit. Within two years, SelectUSA's Executive Director, working with the Federal Interagency Investment Working Group, would have to report to the Senate Commerce Committee and House Energy and Commerce Committee on the comments received, SelectUSA's related activities, and strategies to boost investment and secure the semiconductor supply chain. The bill authorizes no additional funds; SelectUSA must carry out these tasks using existing resources.
Key provisions
- 1Would require SelectUSA to solicit comments from state economic development organizations on foreign direct investment in semiconductor manufacturing within 180 days of enactment
- 2Would require developing recommendations on increasing investment and preventing foreign adversaries from benefiting from U.S. investment efforts
- 3Would require a report to Congress within 2 years on comments received, SelectUSA activities, and investment strategies
- 4Would prohibit authorization of additional funds, requiring SelectUSA to use existing resources to carry out the Act
Who would be affected
SelectUSA and its Executive Director, the Federal Interagency Investment Working Group, state-level economic development organizations, and the congressional committees that would receive the report. Indirectly, semiconductor manufacturers and foreign investors considering U.S. production sites could be affected by any resulting strategies.
Why it matters
The bill sets up a structured information-gathering and reporting process aimed at strengthening the U.S. semiconductor supply chain, which lawmakers view as important to economic and national security. Because no new funding is authorized, its practical effect depends on whether the resulting recommendations lead to future action or investment.
What would change
Agencies directed to act
Effective dates
- Deadline for SelectUSA to solicit comments from state economic development organizations
- Deadline for SelectUSA's report to Congress on semiconductor investment strategies
Funding and costs
Congressional Budget Office estimate
CBO estimates S. 97 would cost $4 million over the 2025–2030 period, with no effect on direct spending, revenues, or the deficit.
CBO estimates that implementing S. 97, the Securing Semiconductor Supply Chains Act, would require about $4 million in discretionary spending (funds that must be appropriated by Congress) over the 2025–2030 period, covering roughly two employees and six contractors for approximately two years at an average cost of $210,000 each. The bill directs the Department of Commerce's SelectUSA program to solicit input from state economic development organizations on supporting foreign direct investment in semiconductor manufacturing, and to report to Congress on related strategies. The bill would have no effect on direct (mandatory) spending or revenues in any period, and CBO found no intergovernmental or private-sector mandates.
How implementation would work
SelectUSA's Executive Director would first gather input from state economic development organizations on barriers, opportunities, and resource gaps affecting semiconductor-related foreign investment, within 180 days of enactment. Using that input and coordination with the Federal Interagency Investment Working Group, SelectUSA would then compile a report within two years for the Senate Commerce Committee and House Energy and Commerce Committee, assessing strategies to increase investment and secure the supply chain. No new funds are authorized, so the process would run on SelectUSA's existing budget and staff.
Legislative status & sources
Latest action
Held at the desk.
Official CRS summary
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This bill requires the SelectUSA program to solicit comments from state economic development organizations regarding federal efforts to increase foreign direct investment in semiconductor-related manufacturing and production. SelectUSA must then report to Congress on such comments and the strategies that SelectUSA may employ to increase such investment and to secure the U.S. semiconductor supply chain.
SelectUSA is a Department of Commerce program established to coordinate federal efforts to attract and retain business investment in the United States.
Legislative subjects
Commerce; Competitiveness, trade promotion, trade deficits; Computers and information technology; Congressional oversight; Economic development; Manufacturing; Supply chain; U.S. and foreign investments
Committee report
S. Rept. 119-18