S.97 - Securing Semiconductor Supply Chains Act (119th Congress)
Summary
The Securing Semiconductor Supply Chains Act aims to bolster the U.S. semiconductor industry by increasing foreign direct investment (FDI) in semiconductor-related manufacturing and production. It directs SelectUSA, a program within the Department of Commerce, to coordinate with state-level economic development organizations to achieve this goal. The Act mandates SelectUSA to solicit feedback from these organizations, develop recommendations, and submit a report to Congress on strategies to enhance FDI in the semiconductor sector.
Expected Effects
This act is likely to increase foreign investment in US based semiconductor manufacturing. This will likely lead to a more robust and resilient domestic semiconductor supply chain. It is also expected to reduce reliance on foreign sources, particularly those that may pose national security risks.
Potential Benefits
- Strengthens the U.S. semiconductor supply chain, reducing reliance on foreign sources.
- Creates jobs in the manufacturing and technology sectors.
- Stimulates economic growth through increased foreign direct investment.
- Enhances national security by ensuring a stable supply of semiconductors.
- Promotes innovation and technological advancement in the semiconductor industry.
Potential Disadvantages
- No additional funds are allocated, potentially limiting the effectiveness of the Act.
- The Act relies on voluntary coordination and recommendations, which may not be fully implemented.
- Increased foreign investment could raise concerns about technology transfer and intellectual property protection.
- The focus on foreign investment might overshadow the importance of domestic investment and innovation.
- The Act's success depends on the cooperation of state-level economic development organizations, which may vary in their capacity and priorities.
Constitutional Alignment
The Act appears to align with the Constitution's Commerce Clause (Article I, Section 8, Clause 3), which grants Congress the power to regulate commerce with foreign nations and among the several states. By seeking to strengthen the domestic semiconductor industry through foreign direct investment, the Act aims to promote economic activity and ensure a stable supply chain, which falls within the scope of Congress's regulatory authority over commerce. The Act does not appear to infringe upon any individual liberties or rights protected by the Bill of 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).