Summary of the Bill

The "Securing Semiconductor Supply Chains Act of 2023" aims to strengthen the United States' semiconductor supply chain by promoting foreign direct investment in semiconductor-related manufacturing and production. The bill outlines specific responsibilities for SelectUSA, a program under the Department of Commerce, to work with state-level economic development organizations to attract foreign investments. It emphasizes the importance of semiconductors to the U.S. economy and national security, highlighting the need to enhance domestic production capabilities.

Significant Issues

One of the primary issues with the bill is the timeline outlined in Section 4. The 180-day period for gathering comments from state-level organizations may be too short, leading to incomplete assessments and potentially undermining the law's effectiveness. Similarly, the timeline in Section 5, which mandates a report submission within two years, may be too extended given the rapidly evolving semiconductor industry. This delay could hinder timely decision-making and response to industry changes.

There are also concerns about the allocation of existing funds, as Section 6 states no additional funds will be provided. This raises questions about the feasibility of achieving the bill's objectives without new resources. Further, the absence of clear accountability measures in Section 5 for evaluating the effectiveness of strategies poses challenges to ensuring successful outcomes.

Additionally, the reliance on another act to define "foreign adversaries" complicates understanding for individuals not familiar with the Secure and Trusted Communications Networks Act of 2019. Moreover, the bill lacks clarity on how state-level inputs will be integrated into policy changes, which is crucial for addressing real-world challenges state organizations face.

Impact on the Public and Specific Stakeholders

Broadly, the bill seeks to enhance the U.S. semiconductor supply chain, which could have positive effects on the national economy and security. A strengthened supply chain may lead to increased job opportunities, reduce dependency on foreign semiconductor sources, and enhance technological innovation within the country. However, if the act fails to secure adequate funding and timely execution, these potential benefits could be jeopardized.

For stakeholders like state-level economic development organizations, the bill provides an avenue for greater involvement in federal economic strategies and investment attraction. However, this could also lead to increased administrative burdens as they navigate short timelines and resource constraints.

SelectUSA and related federal agencies may face challenges coordinating efforts and avoiding duplicative work, potentially impacting the efficiency and effectiveness of investment strategies. There is also a risk of resource strain as they work within existing budgets without additional funding.

In summary, while the bill has commendable goals, its effectiveness will rely heavily on resolving timelines, funding, and coordination issues. Addressing these concerns could enhance its potential to positively impact semiconductor manufacturing and the broader U.S. economy.

The "Securing Semiconductor Supply Chains Act of 2023," also known as H.R. 752, is a legislative effort to bolster the U.S. semiconductor supply chain, with a particular emphasis on increasing foreign direct investment in domestic semiconductor manufacturing. The act leverages the SelectUSA program to coordinate efforts with state-level economic development organizations to stimulate this investment.

Financial References and Allocations

A critical aspect of this legislation is the provision that no additional funds are authorized for carrying out its objectives. In Section 6, the act explicitly states that no extra money from federal appropriations will be allocated for its implementation. This means that the SelectUSA program and other involved entities must utilize their existing budgets to fulfill the act's requirements.

This approach to funding—or lack thereof—raises several concerns:

1. Feasibility Without Additional Resources: As outlined in one of the issues, the absence of new financial resources might limit the act's impact. The legislative mandate requires substantial coordination and reporting efforts, but without any new funding, it’s unclear how these will be effectively supported. State-level organizations and SelectUSA might face challenges reallocating their current resources to meet the demands of the act. This could potentially lead to inefficiencies or diminish the overall effectiveness of the initiative.

2. Efficiency and Avoidance of Redundancy: The act's requirement for collaboration among various organizations, including state-level economic development bodies and federal agencies, could lead to overlapping responsibilities. The absence of an increased budget exacerbates the risk of duplicated efforts due to limited resources, further challenging efficient implementation.

3. Leveraging of Foreign Investment: The act contemplates using existing financial means to leverage foreign investment and private dollars for boosting the domestic semiconductor manufacturing capacity. However, the legislation does not provide clear guidance or mechanisms on how these investments will be attracted and integrated without new financial incentives or backing.

In conclusion, while the act aims to secure and strengthen the semiconductor supply chain through strategic coordination and increased foreign investment, the lack of additional financial allocations may strain existing resources. This could impact the ability of involved organizations to implement the law effectively, thus affecting the successful realization of the act’s objectives.