Plan to Boost US Chip Making with Foreign Investment Launched, Relies on State Input and Existing Budgets

This bill, the "Securing Semiconductor Supply Chains Act of 2025," directs the federal government's SelectUSA program—part of the Department of Commerce—to step up efforts to attract foreign companies to build semiconductor-related facilities right here in the US. The stated goal is clear: strengthen the domestic supply chain for these critical components, aiming to fix the kinds of shortages that have recently snarled manufacturing and address national security vulnerabilities Congress has flagged.

Calling the States: What's the Holdup?

The first step involves tapping into local know-how. Within 180 days, SelectUSA is tasked with gathering feedback directly from state-level economic development organizations. They need to figure out what it really takes to land more foreign direct investment specifically for semiconductor manufacturing – this includes not just chip fabrication plants, but also facilities for advanced packaging, specialized materials, and the equipment needed to make it all happen. The key questions are: What are the biggest roadblocks preventing foreign companies from setting up shop here? Are there specific public opportunities being missed? And how can the federal government better support state efforts to attract these kinds of high-tech investments?

Friends Welcome, Foes Not So Much

This isn't just about opening the doors wide; there's a strategic angle. The bill requires SelectUSA to develop recommendations on how to collaborate with allied nations on investment strategies. Crucially, it also mandates figuring out how to prevent these efforts from benefiting "foreign adversaries." This term comes from existing law (47 U.S.C. 1607(c)(2)) and generally points to foreign governments or entities whose actions are considered harmful to US national security. The bill doesn't spell out the exact mechanisms for this screening process, leaving some questions about how it will work in practice.

The Catch: Big Goals, Same Budget

Here’s a critical piece of fine print found in Section 6: the bill explicitly states that no additional funds are authorized to carry out these new directives. SelectUSA and its state partners are expected to ramp up coordination, gather feedback, develop strategies, and ultimately try to increase foreign investment using only their existing resources. This immediately raises practical questions about the initiative's potential impact. Can significant new investment be spurred without dedicated funding, or will this primarily result in analysis and reports without the budget to fully act on them? SelectUSA has two years to report back to Congress on its activities and progress.

More Factories or Just More Meetings?

On paper, success could mean more domestic factories churning out essential chips, leading to more high-tech jobs and a more reliable supply for everything from cars to medical devices. However, the lack of new funding is a significant constraint. The effectiveness of the Act likely hinges on how well SelectUSA can leverage existing programs and foster collaboration between federal agencies and state organizations without a bigger budget. The focus seems geared towards better coordination and strategy development rather than launching large, federally-funded incentive programs.