NASHVILLE, TENN. – The Senate has passed bipartisan legislation led by U.S. Senators Marsha Blackburn (R-Tenn.), Gary Peters (D-Mich.), and Rick Scott (R-Fla.) which would strengthen federal efforts to expand domestic manufacturing of semiconductor chips. The Securing Semiconductor Supply Chains Act would direct the U.S. Department of Commerce’s SelectUSA program – in collaboration with federal agencies and state economic development organizations – to develop strategies to attract investment in U.S. semiconductor manufacturers and supply chains. The legislation now heads to the House of Representatives.

“The recent global chip shortage put American medical equipment, computer, and car supply chains on hold,” said Senator Blackburn. “The passage of the Securing Semiconductor Supply Chain Act in the Senate gets us one step closer to making existing resources available to producers of semiconductor equipment. This work is essential to decreasing our reliance on companies controlled by the Chinese Communist Party, restoring global supply chains, and boosting manufacturers in Oak Ridge and Nashville, Tennessee.” 

“The ongoing semiconductor chip shortage has caused major disruptions for Michigan’s manufacturers and automakers and further exposed an overreliance on foreign producers that threatens our economic and national security,” said Senator Peters. “By boosting our semiconductor manufacturing capabilities and driving investments in American manufacturing, this legislation will bolster our domestic supply chains and strengthen our global economic competitiveness. I was proud to author this bipartisan bill and see it passed in the Senate – and I urge my colleagues in the House to take swift action to get it signed into law as soon as possible.”

“It’s more important than ever that we bolster the United States’ ability to be self-sufficient in our domestic semiconductor supply chain,” said Senator Scott. “Our good bill will address the crippling shortage facing our businesses and help our nation’s economy remain competitive on a global scale to fight against Communist China’s growing influence. I’m proud to see this critical legislation pass the Senate and urge its quick passage in the House.” 

The SelectUSA program was established in 2011 to improve federal efforts that attract job-creating business investments in the United States and support U.S. firms. The Senators’ bill comes amid a report issued last year by the Biden Administration, which emphasized that the SelectUSA program could be leveraged to strengthen private sector investments across the semiconductor manufacturing supply chain.

The Securing Semiconductor Supply Chains Act would direct the SelectUSA program to engage with state-level economic development organizations about how they are attracting foreign direct investment to onshore activities related to semiconductor manufacturing, and identify what resource gaps or other challenges they face in achieving that goal. SelectUSA would then be required to develop strategies to increase investments in semiconductor manufacturing.