[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.

                                  [all]