S 97: Securing Semiconductor Supply Chains Act

S 97 in plain English: This bill requires the SelectUSA program, a Department of Commerce initiative that attracts business investment to the U.S., to gather input from state economic development organizations on federal efforts to increase foreign direct investment in semiconductor manufacturing. SelectUSA must then report to Congress on that feedback and potential strategies to grow semiconductor investment and secure the U.S. semiconductor supply chain.

Stated purpose

The bill requires the SelectUSA program at the Department of Commerce to gather input from state economic development organizations and report to Congress on how to increase foreign investment in U.S. semiconductor manufacturing and secure the semiconductor supply chain.

Key points

• Requires SelectUSA to solicit comments from state economic development organizations on semiconductor investment efforts.
• Directs SelectUSA to report to Congress on strategies to increase foreign direct investment in semiconductor manufacturing.
• Aims to strengthen and secure the U.S. semiconductor supply chain through coordinated federal action.

Arguments supporters make

• Semiconductors are critical to both the economy and national security, and coordinating federal and state efforts to attract foreign investment could help close supply chain gaps without spending new taxpayer dollars.
• Bringing states into the conversation ensures that people closest to local investment opportunities and barriers have a voice in shaping national strategy.
• Building a more resilient domestic semiconductor supply chain reduces the risk of future shortages like the one that disrupted the economy during the COVID-19 pandemic.

Arguments opponents make

• The bill only requires information-gathering and a report — it creates no funding, no programs, and no enforceable actions, so it may do little to actually change the supply chain.
• Relying on foreign direct investment to secure a supply chain seen as a national security priority could introduce new dependencies on foreign companies or governments rather than reducing them.
• Adding another reporting requirement to an existing federal program may consume agency resources and staff time without producing meaningful results beyond a document delivered to Congress.

Tradeoffs

The bill avoids any new government spending by relying on existing resources, but that constraint may limit how thorough or effective the coordination and analysis can be. It also seeks foreign investment to strengthen domestic semiconductor capacity, which balances economic growth against the risk of introducing new foreign influence into a strategically sensitive industry.

Current status in Congress: Passed Senate.

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