H.R.2480 - Securing Semiconductor Supply Chains Act of 2025 (119th Congress)
Summary
H.R.2480, the Securing Semiconductor Supply Chains Act of 2025, aims to bolster the United States' semiconductor industry by increasing foreign direct investment (FDI) in domestic manufacturing and production. The bill directs SelectUSA, a program within the Department of Commerce, to coordinate with state-level economic development organizations to identify opportunities and remove barriers to FDI in the semiconductor sector. It also mandates a report to Congress on strategies to enhance FDI and secure the semiconductor supply chain.
The bill focuses on onshoring, reshoring, and diversifying vulnerable segments of the semiconductor supply chain, including fabrication, advanced packaging, and materials/equipment. The Act emphasizes collaboration with allied nations to prevent foreign adversaries from benefiting from U.S. investment efforts.
Ultimately, the bill seeks to strengthen the U.S. economy and national security by ensuring a stable and secure supply of semiconductors.
Expected Effects
This bill, if enacted, would likely lead to increased coordination between federal and state entities in attracting foreign investment to the semiconductor industry. This could result in more semiconductor manufacturing and production facilities being established or expanded in the United States.
Furthermore, the mandated report to Congress would provide a roadmap for future strategies to secure the semiconductor supply chain. The bill could also strengthen relationships with allied nations in this critical sector.
However, the bill explicitly states that no additional funds are authorized for its implementation, which may limit its effectiveness.
Potential Benefits
- Strengthened national security by reducing reliance on foreign sources for semiconductors.
- Increased domestic manufacturing and production of semiconductors, leading to job creation.
- Enhanced economic growth through foreign direct investment in the semiconductor industry.
- Improved supply chain resilience, protecting against future disruptions.
- Greater collaboration between federal and state governments in promoting economic development.
Potential Disadvantages
- The bill does not authorize any additional funding, which may limit the scope and effectiveness of the proposed activities.
- The reliance on foreign direct investment could make the U.S. semiconductor industry vulnerable to geopolitical risks.
- The focus on specific segments of the supply chain might neglect other important areas.
- The coordination efforts could be hampered by bureaucratic hurdles and conflicting priorities among different agencies and organizations.
- There is no guarantee that increased FDI will translate into significant improvements in the security and stability of the semiconductor supply chain.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce with foreign nations and among the several states. By seeking to attract foreign investment and strengthen the domestic semiconductor industry, the bill aims to promote economic activity and ensure a stable supply chain, which falls under the purview of interstate and foreign commerce.
Additionally, the bill's focus on national security could be linked to the Necessary and Proper Clause (Article I, Section 8, Clause 18), which allows Congress to enact laws necessary for carrying out its enumerated powers, including providing for the common defense. Securing the semiconductor supply chain is arguably essential for national defense in the modern era.
There is nothing in the bill that appears to violate any specific constitutional provision or individual rights.
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).