Semiconductor Supply Chain Security and Diversification Act of 2025

This bill aims to make the semiconductor supply chain in the Americas more secure and diverse. It encourages building a regional chip ecosystem in the Western Hemisphere to complement U.S. investments under the CHIPS and Science Act, so allies have open, competitive markets and more than one source for key parts and materials. It also pushes U.S. public and private investment in Latin American chip infrastructure in ways that fit local capacity and security needs.

It directs the State Department, with the Commerce Department and others, to help Western Hemisphere governments diversify both the “upstream” parts (like mining and processing critical minerals) and the “downstream” parts of the chip supply chain. This includes diplomatic help through the Organization of American States for cross-border infrastructure talks, improving rules for the chip sector, and building markets that are open, transparent, and well-integrated across the region.

Key points

• Who is affected: U.S. agencies (State, Commerce, and others), Western Hemisphere governments, U.S. investors and chip-related businesses, and communities in Latin America.
• What changes: Support to diversify supply sources and routes; help with cross‑border infrastructure negotiations; stronger, more consistent rules for chip markets; and better regional market integration. Upstream includes things like mining and processing of minerals used to make chips.
• How support works: The U.S. International Development Finance Corporation may back chip supply projects even in upper‑middle‑income and high‑income countries in the hemisphere. Some usual limits would not apply, but funding is restricted unless the President certifies it serves U.S. economic or foreign policy interests and either benefits the poorest people or counters moves by a strategic rival to gain leverage or sensitive tech/infrastructure in an ally’s country.
• When: The bill does not set specific dates; it directs agencies to carry out these actions as appropriate.