Policy Alert: Senate Passes Bipartisan Semiconductor Supply Chain Bill

Action: Bipartisan legislation (S.97 Securing Semiconductor Supply Chains Act) passed unanimously in the Senate with the aim of building on the efforts of the CHIPS and Science Act of 2022 to increase domestic manufacturing of semiconductor chips. It directs the Commerce Department’s SelectUSA program to solicit comments from state economic development organizations regarding Federal efforts to increase foreign direct investment in semiconductor-related manufacturing and production. SelectUSA must then report to Congress on strategies to be employed to increase these investments.

Key Insights

• The bill was sponsored by Senator Gary Peters (D-MI) and cosponsored by Senators Marsha Blackburn (R-TN) and Rick Scott (R-FL). A related bill sponsored by Representative Greg Landsman (D-OH) and cosponsored by Representatives Cliff Bentz (R-OR) and Brian K. Fitzpatrick (R-PA) passed the House in April.
• President Obama established SelectUSA in 2011 by Executive Order 13577 to support private sector job creation and enhance economic growth by encouraging and supporting business investment in the US. Since its inception, SelectUSA has facilitated more than $270 billion in investment, creating, and/or retaining over 240,000 US jobs.
• President Trump on March 31 issued an Executive Order directing the establishment of an Investment Accelerator office in the Department of Commerce intended to facilitate investments of $1 billion or more by assisting investors with navigating Federal and state regulatory requirements, increasing access to “national resources,” and facilitating research collaborations with US national labs. The Office will also be responsible for the existing CHIPS Program Office.