H.R.1215 - Semiconductor Supply Chain Security and Diversification Act of 2025 (119th Congress)
Summary
H.R.1215, the Semiconductor Supply Chain Security and Diversification Act of 2025, aims to diversify the semiconductor supply chain by supporting Western Hemisphere countries' efforts to increase their upstream (mining, production) and downstream (testing, packaging) capabilities. The bill directs the Secretary of State, in consultation with the Secretary of Commerce, to provide diplomatic and political support to the Organization of American States and Western Hemisphere governments. This support includes facilitating international negotiations, enhancing regulatory environments, and developing accessible and competitive supply chain markets.
The bill also allows the United States International Development Finance Corporation to support relevant projects in upper-middle-income and high-income economies within the Western Hemisphere. Restrictions on this support may be waived if the President certifies that it furthers U.S. national interests or counters strategic competitors.
Overall, the bill seeks to reduce reliance on specific regions for semiconductor production and enhance economic and national security through regional partnerships.
Expected Effects
The likely effect of this bill is increased investment in semiconductor-related industries in Western Hemisphere countries. This could lead to the development of new mining, production, and testing facilities.
It may also result in stronger diplomatic and economic ties between the U.S. and these countries. Ultimately, the bill aims to create a more resilient and geographically diverse semiconductor supply chain.
Potential Benefits
- Reduced reliance on potentially adversarial nations for critical semiconductor components.
- Increased economic opportunities in Western Hemisphere countries, fostering stability and partnership.
- Enhanced national security for the United States by securing a more reliable supply of semiconductors.
- Potential for innovation as new players enter the semiconductor market.
- Strengthened diplomatic relationships with countries in the Western Hemisphere.
Potential Disadvantages
- Potential for increased costs associated with diversifying supply chains.
- Risk of unintended consequences from government intervention in the market.
- Possible delays in implementation due to bureaucratic processes.
- Uncertainty regarding the long-term success of projects in Western Hemisphere countries.
- Potential for environmental damage in countries where mining and production are expanded.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's broad goals of promoting the general welfare (Preamble) and providing for the common defense (Preamble). Article I, Section 8 grants Congress the power to regulate commerce with foreign nations, which this bill indirectly addresses by influencing international supply chains.
However, the allocation of funds and the delegation of authority to the Secretary of State and other agencies must be consistent with the non-delegation doctrine. The bill defines the scope of authority reasonably well, mitigating concerns about excessive delegation.
No specific constitutional rights appear to be directly infringed by this bill.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).