New Bill Tasks SelectUSA with Boosting Foreign Investment in U.S. Chip Making, But Provides No New Funds

The "Securing Semiconductor Supply Chains Act" is all about getting more computer chips made here in the U.S. by encouraging foreign companies to set up shop. The bill directs the Department of Commerce's SelectUSA program—which basically acts as a promoter for business investment in America, as set up by Executive Order 13577—to figure out how to attract more foreign direct investment specifically for semiconductor manufacturing and production. This involves talking to state-level economic development groups and, within two years, reporting back to Congress with a game plan.

Laying the Groundwork: What's the Actual Plan?

So, why the push? Section 3 of the bill lays it out: semiconductors are critical for pretty much everything, from our cars to our national security, and recent shortages have put a dent in the economy. The idea is to make our supply chain for these tiny tech powerhouses more resilient.

Here’s the step-by-step, according to Section 4: Within 180 days of the bill becoming law, SelectUSA needs to huddle with state economic development organizations. They'll be tasked with figuring out how the federal government can better support foreign investment in chip-making, what's stopping more of that investment from happening now, what opportunities are out there, and what resources states are missing to attract these kinds of projects. Based on this feedback, SelectUSA then has to cook up recommendations on how it can ramp up this investment, both on its own and by teaming up with the states.

The Fine Print: Guarding Secrets and Counting Pennies

There are a couple of important catches. First, Section 4 also mandates that SelectUSA develop strategies for working with U.S. allies to make sure that "foreign adversaries" don't end up benefiting from these American efforts. A "foreign adversary," as defined in existing law (47 U.S.C. 1607(c)(2)), generally refers to foreign governments or entities acting in ways that harm U.S. national security. So, if a company with close ties to such an entity wanted to invest under this initiative, the goal would be to ensure U.S. efforts aren't inadvertently helping them.

Second, and this is a big one for anyone watching government spending: Section 6 explicitly states, "No additional funds are authorized to be appropriated to carry out this Act." That means SelectUSA has to pull off this entire new mission—gathering feedback, developing complex strategies, coordinating with states and federal agencies—using only the money it already has. Think of it like your job giving you a major new assignment but no extra budget or staff to handle it. This could mean other existing SelectUSA priorities get less attention, or this semiconductor initiative might not have the resources to be as effective as hoped.

The Two-Year Check-Up: Reporting to Congress

Finally, Section 5 requires the head of SelectUSA to submit a detailed report to key House and Senate committees within two years. This report isn't just a pat on the back; it needs to include a review of all that feedback from the states, a rundown of what SelectUSA has actually done to boost foreign investment in chip manufacturing, and an evaluation of strategies to attract even more of this investment. These strategies are expected to involve teamwork with other federal agencies and the state economic development organizations, incorporating their ideas.

Essentially, this bill is about creating a more detailed roadmap to strengthen the U.S. semiconductor industry by leveraging foreign investment. The challenge will be whether SelectUSA, without any new funding, can effectively gather the necessary intelligence and formulate impactful strategies to truly move the needle on domestic chip production.