Semiconductor Sovereignty Act

The Semiconductor Sovereignty Act would require the Secretary of Commerce (through the Under Secretary for Industry and Security) to prepare and publish detailed, multi-year assessments of the United States’ semiconductor manufacturing and related research. The initial report, due within 240 days after enactment, would map out critical inputs, tools, processes, and supply chains; analyze long-run trends in offshoring, reshoring, and foreign involvement; and evaluate bottlenecks and the roles of foreign nationals and foreign entities. It would also assess the impact of offshore manufacturing on the economy, national security, and U.S. relationships with allies and adversaries, including Taiwan. Based on these findings, the Secretary would propose strategies to disincentivize offshoring, bolster domestic manufacturing and research (potentially via tax incentives and subsidies), strengthen oversight of acquisitions by foreign entities, and reduce problematic foreign influence. The act requires Congress and the Federal Register to receive and publish these strategies and policy recommendations, while protecting the privacy of individuals. The bill also establishes a cadence for annual updates to determine whether strategies are outdated and to publish refreshed plans. A clear definition of “foreign entity” is provided, and the Secretary would consult with other federal agencies in carrying out these duties.