This bill matters because semiconductors, or computer chips, are critical components in almost everything from smartphones and cars to medical devices and military equipment. Relying heavily on foreign countries for their production can create vulnerabilities in the U.S. supply chain, as seen during recent global shortages, which can disrupt industries, raise prices, and even compromise national security.
If this bill becomes law, it would provide a detailed understanding of the challenges and opportunities in the U.S. semiconductor industry, offering a roadmap for future government action. Without it, policymakers might continue to make decisions about this crucial sector without a comprehensive, up-to-date assessment of its strengths, weaknesses, and foreign dependencies, potentially leaving the U.S. vulnerable to future economic shocks or geopolitical tensions.
KEY PROVISIONS
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PROVISION 01
Directs the Secretary of Commerce to produce an initial report within 240 days, identifying critical inputs for semiconductors, trends of manufacturing moving overseas (offshoring), and bottlenecks in production and trade.
This provision aims to gather foundational data on the current state and vulnerabilities of the U.S. semiconductor supply chain.
PROVISION 02
Requires the report to assess the implications of offshore manufacturing and research on the U.S. economy, national security, supply chains, allies, and adversaries.
This ensures that the strategic importance and risks associated with global semiconductor production are thoroughly evaluated.
PROVISION 03
Mandates the recommendation of strategies to disincentivize offshoring and increase domestic manufacturing and research of semiconductors, including through tax incentives and attracting foreign talent.
This provision focuses on developing actionable plans to strengthen the domestic semiconductor industry and reduce reliance on foreign production.
PROVISION 04
Requires the Secretary of Commerce to submit annual follow-up reports to update strategies and determine if previously recommended ones are outdated.
This ensures that the proposed strategies remain current and responsive to changing global market conditions and technological advancements.
PROVISION 05
Prohibits the inclusion of personally identifiable information of individuals in the reports.
This protects the privacy of individuals who may be mentioned in the context of foreign work or education.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Energy and Commerce, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill matters because semiconductors, or computer chips, are critical components in almost everything from smartphones and cars to medical devices and military equipment. Relying heavily on foreign countries for their production can create vulnerabilities in the U.S. supply chain, as seen during recent global shortages, which can disrupt industries, raise prices, and even compromise national security.
If this bill becomes law, it would provide a detailed understanding of the challenges and opportunities in the U.S. semiconductor industry, offering a roadmap for future government action. Without it, policymakers might continue to make decisions about this crucial sector without a comprehensive, up-to-date assessment of its strengths, weaknesses, and foreign dependencies, potentially leaving the U.S. vulnerable to future economic shocks or geopolitical tensions.
KEY PROVISIONS
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high
Directs the Secretary of Commerce to produce an initial report within 240 days, identifying critical inputs for semiconductors, trends of manufacturing moving overseas (offshoring), and bottlenecks in production and trade.
This provision aims to gather foundational data on the current state and vulnerabilities of the U.S. semiconductor supply chain.
high
Requires the report to assess the implications of offshore manufacturing and research on the U.S. economy, national security, supply chains, allies, and adversaries.
This ensures that the strategic importance and risks associated with global semiconductor production are thoroughly evaluated.
high
Mandates the recommendation of strategies to disincentivize offshoring and increase domestic manufacturing and research of semiconductors, including through tax incentives and attracting foreign talent.
This provision focuses on developing actionable plans to strengthen the domestic semiconductor industry and reduce reliance on foreign production.
med
Requires the Secretary of Commerce to submit annual follow-up reports to update strategies and determine if previously recommended ones are outdated.
This ensures that the proposed strategies remain current and responsive to changing global market conditions and technological advancements.
low
Prohibits the inclusion of personally identifiable information of individuals in the reports.
This protects the privacy of individuals who may be mentioned in the context of foreign work or education.
Annually, starting one year after the initial report is submitted
Subsequent report submissions (annual updates)
GLOSSARY
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Semiconductors
Materials that have properties between conductors and insulators, commonly used to make electronic components like computer chips.
Offshoring
When a company moves a part of its operations, such as manufacturing or research, to a foreign country.
Reshoring
The process of bringing manufacturing or other operations back to a company's home country from overseas.
Supply Chain
The entire process involved in producing and delivering a product or service, from raw materials to the end consumer.
Photolithography
A process used in semiconductor manufacturing to transfer a pattern to a thin film or substrate using light.
Enactment
The process of making a bill into a law, typically after it passes both houses of Congress and is signed by the President.
Foreign Entity
A corporation, partnership, or other organization that is based in a foreign country or has its main business operations outside the United States.
ACTION TIMELINE
2 EVENTS
SEP 10, 25
Introduced in House
INTROREFERRAL
SEP 10, 25
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Energy and Commerce, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.