S.97 - Securing Semiconductor Supply Chains Act (119th Congress)
Summary
The Securing Semiconductor Supply Chains Act aims to bolster the United States' semiconductor industry by increasing foreign direct investment (FDI) in domestic manufacturing and production. It 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 semiconductor-related sectors. The Act also mandates a report to Congress on strategies to enhance FDI and secure the semiconductor supply chain.
This legislation acknowledges the critical role of semiconductors in the US economy and national security. It seeks to mitigate supply chain vulnerabilities exposed by events like the COVID-19 pandemic.
No additional funds are authorized, requiring SelectUSA to implement the Act using existing resources.
Expected Effects
The Act is likely to result in increased coordination between federal and state entities to attract foreign investment in the semiconductor industry. This could lead to the expansion of domestic semiconductor manufacturing capabilities. It may also reduce reliance on foreign sources for critical components.
However, the absence of additional funding may limit the scope and effectiveness of SelectUSA's efforts. The impact will also depend on the willingness of foreign companies to invest in US-based semiconductor manufacturing.
Potential Benefits
- Strengthened National Security: A more secure domestic semiconductor supply chain reduces reliance on potentially unreliable foreign sources, bolstering national security.
- Economic Growth: Increased foreign direct investment can stimulate economic activity, create jobs, and foster innovation in the semiconductor industry.
- Resilient Supply Chains: Diversifying and onshoring semiconductor production can mitigate the impact of future supply chain disruptions.
- Enhanced Competitiveness: A robust domestic semiconductor industry can enhance the United States' competitiveness in the global technology market.
- State-Level Economic Development: The Act encourages collaboration with state-level organizations, potentially leading to targeted investment and job creation in specific regions.
Potential Disadvantages
- Limited Funding: The lack of additional funding may constrain SelectUSA's ability to effectively implement the Act's provisions.
- Potential for Inefficiency: Coordinating with numerous state-level organizations could create bureaucratic hurdles and inefficiencies.
- Dependence on Foreign Investment: The Act's success hinges on attracting sufficient foreign direct investment, which may be subject to geopolitical and economic factors.
- Risk of Unintended Consequences: Efforts to attract FDI could inadvertently benefit foreign adversaries if not carefully managed.
- Delayed Impact: The Act requires reports and recommendations, meaning the actual impact on the semiconductor supply chain may not be realized for several years.
Constitutional Alignment
The Act appears to align with the Constitution's broad goals of promoting the general welfare and providing for the common defense, as stated in the Preamble. Congress's power to regulate commerce with foreign nations (Article I, Section 8, Clause 3) provides a basis for encouraging foreign direct investment.
There are no apparent conflicts with specific constitutional provisions. The Act does not infringe upon individual liberties or rights.
However, the Act's reliance on executive agencies (SelectUSA and the Federal Interagency Investment Working Group) raises questions about the balance of power between the legislative and executive branches, although this is a common feature of modern legislation.
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).