New Chip Security Act Mandates FDI Push, But Provides Zero New Funding

If you’ve ever waited six months for a new car or seen the price of electronics jump, you know the pain of a semiconductor shortage. The Securing Semiconductor Supply Chains Act of 2025 is Congress’s attempt to shore up that supply chain by aggressively recruiting foreign companies to build chip factories here in the U.S. The core idea is to use foreign direct investment (FDI) to boost domestic manufacturing capacity for everything from chip fabrication to advanced packaging, making the U.S. less vulnerable to global shocks (SEC. 3).

The Chip Shortage: Why This Matters to Your Wallet

Congress is pretty clear: semiconductors are the backbone of the economy, and the recent supply chain chaos put millions of jobs at risk. This bill is about stability. It recognizes that the chip supply chain is complex, and the U.S. needs to bring more of the vulnerable parts of that production home. Think of this as an insurance policy against future global lockdowns or geopolitical flare-ups that could halt production and, in turn, stall everything from your new refrigerator delivery to the availability of parts at your local mechanic.

SelectUSA Gets a New Job Description

The Department of Commerce’s SelectUSA program—which already works to attract foreign investment—is now being put in charge of this specific recruitment drive. Within 180 days, SelectUSA must start talking to state-level economic development organizations across the country. They need to ask the folks on the ground what the federal government can do better to attract foreign investment in semiconductor manufacturing, what the current roadblocks are, and what specific opportunities they see (SEC. 4).

For a state economic development director, this means more federal engagement and a clear focus area. For a small town trying to attract a major manufacturing plant, this federal coordination could be a big boost. However, SelectUSA also has a clear mandate to make sure that foreign adversaries—as defined by existing law—don’t benefit from these efforts, adding a security layer to every investment pitch.

The Catch: Do It With What You Have

Here’s where the policy meets the pavement: Section 6 explicitly states that this Act authorizes no additional funds. SelectUSA is tasked with gathering feedback, coordinating with all 50 states, developing new strategies, and producing a comprehensive report to Congress within two years (SEC. 5)—all using its existing budget and staffing. It’s like being told to build a new wing on the house, but you have to use the same crew and the same budget you had last year. While the mandate is clear and the goal is worthy, the lack of new appropriations means that SelectUSA and its staff will have to juggle these major new duties alongside their current workload. This could potentially strain resources and affect how deeply they can pursue these new initiatives. The success of this push hinges entirely on how effectively they can redirect existing resources to meet this new, critical priority.