Sponsors (3)
Promotes diversification of the semiconductor supply chain in the Western Hemisphere by defining covered upstream (mining/processing of specified critical minerals) and downstream (testing/packaging) activities, establishing U.S. policy to support regional semiconductor ecosystems, and directing the Secretary of State (with Commerce and other agencies) to provide diplomatic support and to use available finance tools (including the U.S. International Development Finance Corporation) to back eligible projects. It encourages public and private investment in Latin American semiconductor infrastructure consistent with local absorptive capacity and sets conditions for when DFC support is appropriate for higher‑income countries.
Defines the Act's upstream supply chain to include mining, production, or processing of critical minerals used in semiconductor manufacturing, and explicitly lists the covered minerals: zinc, gallium, germanium, silicon, lithium, and cobalt.
Defines the Act's downstream supply chain to include testing and packaging facilities for semiconductors and advanced testing and packaging facilities for semiconductors.
Congress finds that the United States has an economic and national security interest in diversifying the semiconductor supply chain.
Encourage the development of regionally-based semiconductor ecosystems in the Western Hemisphere to complement investments in the United States under the CHIPS and Science Act.
Promote the security of U.S. allies and partners by encouraging the development of accessible, transparent, competitive, and robust semiconductor markets.
Last progress February 11, 2025 (1 year ago)
Introduced on February 11, 2025 by Greg Stanton
Who is affected and how:
Semiconductor manufacturers, packaging and testing service providers: The bill encourages investment and diplomatic support for building testing/packaging capacity in the Western Hemisphere, which could expand regional downstream capability and create new markets and sites for chip finishing and test operations.
Critical mineral producers and mining companies (zinc, gallium, germanium, silicon, lithium, cobalt): Upstream mining and processing activities for these minerals are explicitly targeted, potentially increasing demand for mining, processing, refining, and related infrastructure investment in the region.
U.S. International Development Finance Corporation (DFC) and implementing agencies (State, Commerce): The DFC will be a central financing vehicle; agencies will need to operationalize guidance, screen projects for eligibility and development impact, and manage external diplomatic engagement and interagency coordination.
Western Hemisphere governments and regional partners (Latin American countries): The legislation explicitly aims to build regional semiconductor ecosystems and will channel diplomatic outreach and potential financing toward projects in these countries, contingent on local absorptive capacity and compliance with DFC criteria.
U.S. private investors and firms: Encouragement of U.S. private investment may open new commercial opportunities but will require viable business cases, local permitting, and compliance with host‑country rules.
Potential benefits:
Risks and implementation challenges:
Fiscal and legal limits:
Referred to the House Committee on Foreign Affairs.