Semiconductor Supply Chain Security and Diversification Act of 2024
Impact
The bill emphasizes the importance of minimizing vulnerabilities in the semiconductor supply chain by supporting the upstream and downstream sectors. It proposes diplomatic and political support for regional governments to create robust and transparent semiconductor markets. This policy aligns with broader global economic priorities and responds to existing pressures within the semiconductor industry, particularly in light of the CHIPS and Science Act enacted in the U.S.
Summary
House Bill 8414, titled the 'Semiconductor Supply Chain Security and Diversification Act of 2024', aims to strengthen the semiconductor supply chain by promoting diversification and development within the Western Hemisphere. This initiative responds to ongoing concerns about over-reliance on specific regions for semiconductor production, especially in light of national security threats. The bill encourages collaboration with Latin American countries to bolster their semiconductor production capabilities.
Contention
While the intent of HB 8414 is broadly supported by various stakeholders who recognize the need for resilient supply chains, certain concerns arise regarding the practical implications of increased U.S. intervention in foreign supply chains. Some legislators question whether this approach sufficiently considers the economic realities and capabilities of Latin American partners. The bill proposes that support be contingent upon certification by the President that such actions align with national security interests, potentially complicating the support mechanisms for these countries.
Urges Congress to reconcile United States Innovation and Competition Act and American COMPETES Act to expedite funding for semiconductor production and innovation.
In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits relating to semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit.
In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing and for Pennsylvania Milk Processing and providing for Reliable Energy Investment Tax Credit and for Pennsylvania Milk Processing; in Regional Clean Hydrogen Hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.