General Summary of the Bill

The bill titled "Securing Semiconductor Supply Chains Act of 2025" is aimed at enhancing the United States' semiconductor manufacturing capabilities by fostering foreign direct investment. It mandates the SelectUSA program, part of the Department of Commerce, to collaborate with state-level economic development organizations. The bill's goal is to boost investment in semiconductor-related manufacturing and ensure that the supply chain is secure and resilient. Given the critical role semiconductors play in the economy and national security, this legislation addresses recent challenges such as supply shortages exacerbated by the COVID-19 pandemic.

Summary of Significant Issues

One major issue with the bill is its stipulation in Section 6 that no additional funds will be authorized to implement the legislation. This might limit the bill's effectiveness if existing resources prove inadequate. Furthermore, Section 4 requires interaction with state economic organizations but lacks detailed criteria for incorporating their feedback, potentially leading to ambiguities. The bill does not define "semiconductor-related production" precisely, which could cause inconsistencies in implementation. Moreover, the two-year timeline for producing a report on boosting foreign investment (outlined in Section 5) may not align with the rapidly evolving nature of the semiconductor industry, possibly delaying necessary actions.

Impact on the Public

For the general public, ensuring a stable and robust semiconductor supply chain could translate to economic benefits, as it supports industries that drive job creation and technological advancement. Semiconductors are foundational to numerous technologies, from smartphones to automobiles; hence, a strengthened supply chain could stabilize consumer prices and availability of high-tech goods. However, the absence of additional funding for the bill's initiatives might dampen its potential impact, leading to less efficiency and slower progress in meeting its objectives.

Impact on Specific Stakeholders

• State-Level Economic Development Organizations: These organizations stand to gain significant influence by providing insights and recommendations for attracting foreign investments. However, they may face challenges due to the ambiguity in how their feedback will be utilized and the lack of specified funding.

• Semiconductor Industry: Companies within the semiconductor industry may benefit from increased investment and a more robust domestic supply chain, enhancing their competitiveness globally. However, unclear definitions and timelines might create uncertainties for these stakeholders as they plan for capacity expansions or new facilities.

• Federal Agencies and SelectUSA: Agencies involved, particularly SelectUSA, would need to stretch their existing resources to meet the legislation's objectives. Coordination without additional funding or clear guidance might strain their current operations.

Overall, while this bill aims to address critical supply chain issues in the semiconductor industry, its effectiveness could be questioned due to funding constraints, unclear definitions, and potential implementation delays. The success of this initiative will largely depend on how adeptly state and federal entities can navigate these challenges.

The bill H.R. 2480, titled the "Securing Semiconductor Supply Chains Act of 2025," aims to boost the U.S. semiconductor manufacturing industry through increased foreign direct investment. Notably, the bill does not authorize additional funds for carrying out its initiatives, which is a critical aspect to consider when evaluating its potential effectiveness and impact.

Financial Allocations and References

Section 6 of the bill explicitly states, "No additional funds are authorized to be appropriated for the purpose of carrying out this Act." This implies that the activities and objectives of the Act must be achieved using existing resources within the SelectUSA program and its coordinating entities. No new financial allocation or spending increase is outlined in the text, which places a constraint on the bill's implementation in light of potential financial limitations.

Relation to Identified Issues

1. Funding Constraints and Program Impact: One significant issue identified is whether existing funds will be sufficient to meet the bill's ambitious goals. The lack of additional funding might limit the impact of this Act. For example, if the current financial resources of SelectUSA are inadequate, this limitation could hinder the program's ability to effectively promote foreign investment in the semiconductor sector. This insufficiency could also affect the engagement with State-level economic development organizations, possibly impacting the potential success of the coordination efforts intended by the bill.

2. Potential Political and Economic Consequences: If the Act's objectives are not met due to budgetary restrictions, there may be political implications, such as criticism from stakeholders expecting tangible outcomes or discontent from states relying on federal assistance to attract foreign investors. The economic implications could include missed opportunities for enhancing domestic semiconductor production capabilities, which can have broader repercussions for economic recovery and national security.

Overall, while the Act sets out a clear mandate for promoting foreign direct investment in semiconductor manufacturing, the specific exclusion of new funding raises concerns about the feasibility of achieving its intended outcomes. Being reliant solely on existing resources places significant pressure on both the SelectUSA program and the collaborating State-level entities, potentially challenging their capacity to adapt and effectively respond without stepping up funding levels.