Senate advances legislation to expand domestic semiconductor chip manufacturing

The Securing Semiconductor Supply Chains Act (S.229) passed its first legislative hurdle without trouble last month, advancing through the Senate with unanimous consent and setting up the possibility of expanded federal help to improve domestic semiconductor chip manufacturing.

The bill, originally authored by U.S. Sens. Gary Peters (D-MI) and Marsha Blackburn (R-TN), would require the U.S. Department of Commerce to collaborate with federal agencies and state economic development organizations through its SelectUSA program. Together, they would work to attract investors for manufacturers and supply chains.

“In order to remain a global economic powerhouse in the 21st century, we must continue to build on the investments we made in the CHIPS and Science Act to boost U.S. production of semiconductor chips, which we know will dictate the future of technology and innovation,” Peters said. “My bipartisan bill would do just that by strengthening our efforts to attract investment in American semiconductor manufacturers as well as their suppliers, reducing our dependence on foreign producers for these critical technologies and creating good-paying jobs here at home.”

SelectUSA was created in 2011 as a means to improve federal business investments and support for U.S. firms. Among other things, the Biden administration previously reported that the program could be particularly utilized to strengthen private sector investment in the semiconductor manufacturing supply chain. Now, the Securing Semiconductor Supply Chains Act would direct the SelectUSA program to interact with state-level economic development organizations about attracting foreign direct investment for their onshore activities and identify the resource gaps and challenges facing that goal.

From there, SelectUSA would need to work out strategies to increase investments in semiconductor manufacturing.

“The passage of this legislation in the U.S. Senate is a win for Tennessee manufacturers who rely on semiconductors to support local and global supply chains,” Blackburn said. “As long as the U.S. continues to depend on Communist China for semiconductor production, our supply chain, economy and national security are all at risk. We need to encourage economic development with local leaders in order to identify resource gaps and address challenges faced by businesses in meeting their bottom line.”

Companion legislation was introduced in the House by U.S. Reps. Greg Pence (R-IN) and Anna Eshoo (D-CA).