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 the semiconductor sector. The Act also mandates a report to Congress on strategies to enhance FDI and secure the semiconductor supply chain.
Expected Effects
This act is likely to increase investment in the US semiconductor industry. This will be achieved through better coordination between federal and state entities. The expected outcome is a more resilient and secure domestic semiconductor supply chain, reducing reliance on foreign sources and mitigating risks associated with global disruptions.
Potential Benefits
- Strengthens national security by reducing reliance on foreign semiconductor suppliers.
- Boosts domestic manufacturing and creates jobs in the semiconductor industry.
- Attracts foreign direct investment, injecting capital into the U.S. economy.
- Enhances the competitiveness of the U.S. semiconductor industry.
- Improves coordination between federal and state economic development efforts.
Potential Disadvantages
- No additional funds are authorized, potentially limiting the scope and effectiveness of the Act.
- The focus on foreign direct investment may not address all vulnerabilities in the semiconductor supply chain.
- The Act relies on the effectiveness of SelectUSA and state-level organizations.
- Potential for unintended consequences from increased foreign investment, such as technology transfer concerns.
- The two-year reporting timeline may delay necessary actions to address supply chain vulnerabilities.
Constitutional Alignment
The Act appears to align with the Constitution's broad goals of promoting the general welfare and providing for the common defense (Preamble). Congress's power to regulate commerce (Article I, Section 8, Clause 3) provides a basis for legislation aimed at strengthening domestic industries and ensuring national security through supply chain resilience. The Act does not appear to infringe on any specific constitutional rights or limitations.
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).