WASHINGTON, D.C.—Reps. Greg Stanton (D-AZ) and Dusty Johnson (R-SD) introduced H.R. 8414, the Semiconductor Supply Chain Security and Diversification Act—legislation designed to bolster the development of a regional semiconductor ecosystem in Latin America.
The bipartisan bill encourages ‘nearshoring’ of the semiconductor supply chain—relocating business operations to the Western Hemisphere—to combat China’s growing global influence while complementing domestic investments made under the CHIPS and Science Act
“Our CHIPS Act is already investing billions of dollars in Arizona’s microchip manufacturing industry. But we have to address our reliance on China for other critical parts of the semiconductor supply chain, from raw materials to distribution,” Rep. Stanton said. “Not only will our bipartisan legislation offer businesses a compelling economic alternative to China, it’ll boost economic prosperity across Latin America.”
“Relying on China for semiconductors and other critical sectors is risky. We must look elsewhere to keep our supply chains secure and do more to attract and incentivize investments in reliable trading partners. Semiconductors play a significant role America’s economy – ensuring a stable supply of semiconductors will protect our national security,” Rep. Johnson said.
Specifically, H.R. 8414 will direct the Development Finance Corporation to invest in “downstream” (critical mineral mining and processing) and “upstream” (testing and packaging) parts of the semiconductor supply chain in the Western Hemisphere, regardless of the host-country’s income classification. The Development Finance Corporation (DFC) was created in 2018 to counter investments made through China’s Belt and Road Initiative. DFC is a U.S. development agency that invests in privately-led development projects through loans, loan guarantees, direct equity investments, feasibility studies, and more.
Bill text is available HERE. A one-pager is available HERE.