Securing Semiconductor Supply Chains Act

Bill Number: S. 97
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Commerce
Status: Passed Senate
Latest Action: 2025-05-26: Held at the desk.
Last Updated: 2026-06-20T02:06:17Z

AI-Generated Summary

Purpose

The Securing Semiconductor Supply Chains Act aims to strengthen the U.S. semiconductor supply chain by promoting foreign direct investment (FDI)—money invested by foreign companies into U.S. operations—in domestic manufacturing and production of semiconductors. It does this by requiring the SelectUSA program (a Department of Commerce initiative that helps attract business investment to the U.S.) to work with state-level economic development groups to identify opportunities and overcome barriers.

Key Provisions

Definitions and Findings: Defines SelectUSA and outlines congressional findings on the critical role of semiconductors in the U.S. economy and national security, the risks from global supply chain shortages (exacerbated by the COVID-19 pandemic), and the need for onshoring (bringing production back to the U.S.), reshoring (returning overseas U.S. operations to the U.S.), or diversifying vulnerable areas like chip fabrication, advanced packaging, and manufacturing materials/equipment.
Coordination with States (Section 4): Within 180 days of enactment, SelectUSA's Executive Director must gather input from state-level economic development organizations (groups that promote business growth in their states) on:
Federal support for FDI in semiconductor production.
Barriers to investment and ways to enhance state efforts.
Opportunities to attract FDI.
Challenges or resource gaps.
Based on this, develop recommendations for SelectUSA to boost FDI through independent actions, partnerships, and collaboration with U.S. allies to prevent benefits to foreign adversaries (countries posing security risks, as defined in existing law).
Reporting Requirement (Section 5): Within 2 years of enactment, SelectUSA must submit a report to the Senate Committee on Commerce, Science, and Transportation and the House Committee on Energy and Commerce. The report will cover:
A summary of state inputs.
Current SelectUSA activities to increase FDI in semiconductors.
Strategies for future growth, including coordination with federal agencies and states.
Funding (Section 6): No new funds are authorized; SelectUSA must use its existing budget.

Significant Changes to Existing Law

This act introduces new mandates for SelectUSA, which was established by a 2011 executive order to promote U.S. investment generally. It specifically directs SelectUSA to focus on semiconductors for the first time, requiring structured coordination with states, input solicitation, recommendation development, and congressional reporting—steps not previously required under SelectUSA's broad mandate.

Potential Impacts

Government Agencies: Increases workload for the Department of Commerce and SelectUSA through coordination, data collection, and reporting, potentially leading to more efficient use of existing resources for supply chain security. Other federal agencies may be involved in joint strategies.
Citizens and Economy: Could create jobs and boost economic recovery by attracting FDI to semiconductor manufacturing, reducing reliance on vulnerable global supplies and mitigating future shortages that affect industries like automotive and electronics.
International Relations: Encourages partnerships with U.S. allies for investment while explicitly excluding adversaries, which may strengthen alliances in technology sectors but could strain relations with countries like China if they are targeted as adversaries.

Main Stakeholders Affected

Federal Government: SelectUSA, Department of Commerce, and congressional committees overseeing commerce and energy.
State Governments: Economic development organizations that provide input and partner on investment attraction.
Private Sector: Semiconductor manufacturers, foreign investors (especially from allies), and U.S. industries reliant on chips.
Broader Public: Workers in manufacturing sectors and consumers affected by supply chain stability.

Notable Legal, Constitutional, or Political Implications

Legal: Builds on existing authorities like Executive Order 13577 without creating new enforcement mechanisms or penalties, relying instead on voluntary coordination and reporting. References the definition of "foreign adversaries" from a 2019 communications law, ensuring consistency.
Constitutional: No apparent conflicts; it aligns with Congress's powers to regulate commerce and promote national security under Article I.
Political: Highlights bipartisan priorities in securing critical technologies amid global competition, potentially complementing broader efforts like the CHIPS and Science Act (2022) for domestic semiconductor incentives. The no-new-funds clause may limit scope but emphasizes efficiency in federal spending.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Peters, Gary C. [D-MI]

Cosponsors (2)

Sen. Blackburn, Marsha [R-TN], Sen. Scott, Rick [R-FL]

Recent Actions

2025-05-26: Held at the desk.
2025-05-26: Received in the House.
2025-05-23: Message on Senate action sent to the House.
2025-05-20: Passed Senate without amendment by Unanimous Consent. (consideration: CR S3002; text: CR S3002-3003)
2025-05-20: Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
2025-05-06: Placed on Senate Legislative Calendar under General Orders. Calendar No. 67.
2025-05-06: Committee on Commerce, Science, and Transportation. Reported by Senator Cruz without amendment. With written report No. 119-18.
2025-05-06: Committee on Commerce, Science, and Transportation. Reported by Senator Cruz without amendment. With written report No. 119-18.
2025-03-12: Committee on Commerce, Science, and Transportation. Ordered to be reported without amendment favorably.
2025-01-15: Read twice and referred to the Committee on Commerce, Science, and Transportation.
2025-01-15: Introduced in Senate

Bill Versions

Securing Semiconductor Supply Chains Act — issued 2025-05-20 — PDF (8 pages)
Securing Semiconductor Supply Chains Act — issued 2025-01-15 — PDF (6 pages)
Securing Semiconductor Supply Chains Act — issued 2025-05-06 — PDF (8 pages)