[House Report 118-136]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 118-136
======================================================================
SECURING SEMICONDUCTOR SUPPLY CHAINS ACT OF 2023
_______
July 11, 2023.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mrs. Rodgers of Washington, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
[To accompany H.R. 752]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 752) to require SelectUSA to coordinate with
State-level economic development organizations to increase
foreign direct investment in semiconductor-related
manufacturing and production, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Committee Action................................................. 2
Committee Votes.................................................. 2
Oversight Findings and Recommendations........................... 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 4
Statement of General Performance Goals and Objectives............ 4
Duplication of Federal Programs.................................. 4
Related Committee and Subcommittee Hearings...................... 4
Committee Cost Estimate.......................................... 5
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 5
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
PURPOSE AND SUMMARY
H.R. 752, the ``Securing Semiconductor Supply Chains Act of
2023,'' was introduced by Representative Eshoo and
Representative Pence on February 2, 2023, and referred to the
Committee on Energy and Commerce. H.R. 752 would require the
Executive Director of SelectUSA to solicit comments from State-
level economic development organizations to review efforts to
support increased foreign direct investment in any segment of
the semiconductor-related production and current barriers and
challenges to such investment. The legislation would also
require the Executive Director to develop recommendations for
how SelectUSA can increase such investment and determine how to
work with allied countries to ensure foreign adversaries do not
benefit from U.S. efforts to increase investment. The
legislation would also require the Executive Director in
coordination with the Federal Interagency Investment Working
Group to submit to Congress a report on the review and
recommendations for how SelectUSA can increase investments. The
legislation would not authorize additional funds for purposes
of carrying out the Act.
BACKGROUND AND NEED FOR LEGISLATION
SelectUSA coordinates outreach and engagement by the
Federal Government to promote the U.S. as the premier location
to operate a business, facilitates resolution to issues
involving the Federal government and pending investments,
educates firms on the investment climate in the U.S. and
available incentives, and reports quarterly to the President on
its promotion activities. This legislation will help Congress
determine what action is necessary to increase foreign direct
investment into the semiconductor related sectors of the U.S.
economy.
COMMITTEE ACTION
On February 7, 2023, the Subcommittee on Innovation, Data,
and Commerce met in open markup session and forwarded H.R. 752,
without amendment, to the full Committee by a recorded vote of
19 yeas and 0 nays.
On March 9, 2023, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 752, without
amendment, favorably reported to the House by a recorded vote
of 49 yeas and 0 nays.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held a hearing and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 752 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to
increase foreign direct investment in American semiconductor
manufacturing capacity.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 752 is known to be duplicative of another Federal program,
including any program that was included in a report to Congress
pursuant to section 21 of Public Law 111-139 or the most recent
Catalog of Federal Domestic Assistance.
RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearing was held:
The Subcommittee on Innovation, Data, and
Commerce held a hearing on February 1, 2023. The
hearing was entitled, ``Economic Danger Zone: How
America Competes to Win the Future Versus China.'' The
Subcommittee received testimony from the following
witnesses:
Brandon Pugh, Policy Director and Resident
Senior Fellow, R Street Institute
Jeff Farrah, Executive Director, Autonomous
Vehicle Industry Association (AVIA)
Samm Sacks, Cyber Policy Fellow,
International Security Program, New America
Marc Jarsulic, Senior Fellow and Chief
Economist, Center for American Progress
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 752 contains no earmarks, limited tax
benefits, or limited tariff benefits.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 designates that the short title may be cited as
the ``Securing Semiconductor Supply Chains Act of 2023.''
Section 2. SelectUSA defined
Section 2 defines the term ``SelectUSA'' to mean the
Department of Commerce Program established by Executive Order
13577.
Section 3. Findings
Section 3 lists Congressional findings emphasizing the
importance of semiconductors, the risks posed by a brittle
semiconductor supply chain, and the benefits of encouraging
private dollars to strengthen domestic capacity through the
SelectUSA program.
Section 4. Coordination with State-level economic development
organizations
Section 4 requires that within 180 days of enactment, the
Exectuive Director of SelectUSA shall solicit comments from
State-level economic development organizations and review
efforts of the Federal government to support foreign direct
investment in semiconductors, barriers to such investment,
public opportunities to attract foreign direct investment, and
resource gaps or other challenges that prevent such
investments. The Executive Director shall also develop
recommendations for how SelectUSA can increase foreign direct
investment by working with countries that are allies or
partners of the United States.
Section 5. Report on increasing foreign direct investment in
semiconductor-related manufacturing and production
Section 5 requires that within two years of enactment, the
Executive Director of SelectUSA, in coordination with a Federal
Interagency Investment Working Group established in Executive
Order 13577, shall submit a report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Energy and Commerce of the House of
Representatives that includes a review of comments received
under section 4, a description of SelectUSA's activites to
increase foreign direct investment in semiconductor-related
manufacturing, and an assessment of strategies the U.S. may use
to secure its semiconductor supply chains.
Section 6. No additional funds
Section 6 states that no additional funds are to be
authorized for the purposes of carrying out this act.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
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