The Securing Semiconductor Supply Chains Act of 2025 is a new bill aimed at strengthening America's semiconductor industry. By encouraging foreign investment in U.S. chip manufacturing, it hopes to secure the supply chain and create jobs without spending new taxpayer money.
What This Bill Does
The Securing Semiconductor Supply Chains Act of 2025 is designed to boost the United States' semiconductor industry. It does this by requiring the SelectUSA program, part of the Department of Commerce, to gather feedback from state economic development organizations. These organizations will share their thoughts on how the federal government can attract more foreign investment in semiconductor manufacturing.
Once the comments are collected, SelectUSA must compile a report for Congress. This report will include strategies to increase foreign investment in the U.S. semiconductor industry. The goal is to make the supply chain more secure and less dependent on foreign countries, especially those that might pose a risk to national security.
Importantly, this bill does not change any existing laws or require new funding. Instead, it builds on the current responsibilities of SelectUSA by adding a specific focus on semiconductors. This approach aims to coordinate efforts between federal and state governments and investors without imposing new costs or restrictions.
Why It Matters
Semiconductors are essential components in many everyday products, from smartphones to cars. By encouraging foreign investment in U.S. semiconductor manufacturing, this bill aims to create more jobs and strengthen the economy. It could lead to new factories being built in states like Ohio, bringing good-paying jobs to local communities.
For everyday Americans, a more secure semiconductor supply chain means fewer disruptions in the availability of electronic products. During the COVID-19 pandemic, shortages in semiconductor supplies led to delays and higher prices for many goods. By bolstering domestic production, this bill seeks to prevent similar issues in the future.
Key Facts
- Cost/Budget Impact: The bill does not require new spending; it relies on existing SelectUSA operations.
- Timeline for Implementation: Provisions take effect upon passage, with no delayed effective date specified.
- Number of People Affected: Primarily impacts the semiconductor industry, state economic organizations, and communities where new manufacturing jobs may be created.
- Key Dates: Introduced in the House on March 31, 2025, and passed as the first bipartisan bill of the 119th Congress.
- Other Important Details: The bill builds on the CHIPS Act's efforts to strengthen the U.S. semiconductor industry without adding new subsidies.
Arguments in Support
- Enhances supply chain security: Supporters argue that the bill will make the U.S. less dependent on foreign countries for semiconductors, reducing risks from potential conflicts or espionage.
- Boosts economic growth and jobs: By coordinating federal and state efforts, the bill could attract foreign investment, leading to more manufacturing jobs in the U.S.
- Addresses national security: The bill complements existing laws by focusing on non-subsidy tools like reporting and strategy-sharing, which can help secure the supply chain without heavy subsidies.
- Leverages bipartisan support: As the first bipartisan bill passed in the House this Congress, it shows cross-party agreement on the importance of strengthening the semiconductor industry.
Arguments in Opposition
- Risk of bureaucracy and cronyism: Critics worry that the bill adds layers of reporting without guaranteeing effective outcomes, similar to concerns raised about the CHIPS Act.
- Insufficient measures against China: Some argue that reporting alone won't stop China from circumventing export controls and acquiring restricted technology.
- Opportunity cost: Opponents suggest that the focus should be on repealing costly subsidies and reducing national debt instead of adding new reporting requirements.
- Potential for unbalanced foreign investment: There are concerns that the bill might favor foreign firms without ensuring benefits for U.S. companies.