H.R.2480 - Securing Semiconductor Supply Chains Act of 2025 (119th Congress)
Summary
H.R.2480, the Securing Semiconductor Supply Chains Act of 2025, aims to bolster the U.S. 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 achieve this goal. The bill mandates a review of federal support, identification of barriers to investment, and development of recommendations to enhance FDI in the semiconductor sector.
The Act requires SelectUSA to submit a report to Congress detailing its activities and strategies for increasing FDI in semiconductor manufacturing. No additional funds are authorized for carrying out the Act, implying that existing resources will be utilized.
The bill focuses on strengthening the semiconductor supply chain, deemed critical for both economic and national security, by encouraging foreign investment in key areas such as fabrication, advanced packaging, and materials/equipment.
Expected Effects
The likely effect of this bill is increased coordination between federal and state entities to attract foreign investment in the semiconductor industry. This could lead to greater domestic manufacturing capacity and reduced reliance on foreign sources for critical components. The Act will also likely result in a report to Congress outlining strategies and activities related to semiconductor FDI.
However, the absence of additional funding may limit the scope and effectiveness of the program. The impact will also depend on the willingness of foreign companies to invest in U.S. semiconductor manufacturing.
Potential Benefits
- Strengthened domestic semiconductor supply chain, reducing reliance on foreign sources.
- Increased foreign direct investment in the U.S., boosting economic activity.
- Potential for job creation in the semiconductor manufacturing sector.
- Enhanced national security by securing a critical technology supply chain.
- Improved coordination between federal and state economic development efforts.
Potential Disadvantages
- No additional funding allocated, potentially limiting the Act's impact.
- Dependence on foreign companies' willingness to invest in the U.S.
- Potential for increased competition for state-level economic development organizations.
- The Act's focus on foreign investment may overshadow the importance of domestic investment and innovation.
- The two-year reporting timeline may delay implementation and assessment of the Act's effectiveness.
Constitutional Alignment
The bill appears to align with the Constitution's broad goals of promoting the general welfare (Preamble) and regulating commerce (Article I, Section 8). Specifically, the focus on strengthening the semiconductor supply chain can be argued to fall under the Commerce Clause, as it involves regulating interstate and foreign commerce. The bill does not appear to infringe on any specific individual rights or liberties protected by the Bill of Rights.
However, the Tenth Amendment reserves powers not delegated to the federal government to the states, and the federal government must be careful not to unduly interfere with state economic development efforts. The bill's emphasis on coordination suggests an attempt to respect state autonomy while pursuing a national objective.
Given the focus on economic and national security, and the coordination approach, the bill appears to be generally aligned with the Constitution.
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).