Semiconductors & Hardware

Section 4 and 5 require SelectUSA to coordinate with state-level economic development organizations to increase foreign direct investment in semiconductor-related manufacturing and production, which directly benefits the semiconductor industry by promoting investment in fabrication, advanced packaging, and materials/equipment.

Title V, Sec. 541: Requires Secretary of Commerce to allocate CHIPS Act funds for fiscal year 2026 to specific accounts and projects, including Industrial Technology Services, directly benefiting semiconductor manufacturing and related hardware industries through targeted funding.

Section 2(a) expands the definition of 'advanced manufacturing facility' to include semiconductor manufacturing, equipment, and materials, and Section 2(b) extends the advanced manufacturing investment credit period from 2026 to 2031, providing a tax credit benefit to semiconductor manufacturers and related industries.

Section 4(a)-(e) directs the Secretary of State to coordinate with allied nations to protect semiconductor technology supply chains, expand export controls, and enhance trusted supplier networks, directly benefiting semiconductor manufacturers and equipment suppliers.

Section 2(f)(2)(A) defines 'advanced manufacturing facility' as a facility whose primary purpose is manufacturing semiconductors or semiconductor manufacturing equipment. Section 2(c)(3) allows the President to waive offset requirements for such facilities if in national security interests, providing a regulatory benefit.

Bill focuses on U.S.-designed AI semiconductors (Sec 3, Sec 7, Sec 10 definitions) and aims to reduce export barriers, directly benefiting semiconductor firms.

Title V, Sec. 541: Requires allocation of CHIPS Act funds to Department of Commerce accounts for semiconductor-related projects, including National Institute of Standards and Technology funds, directly benefiting semiconductor manufacturers through research, development, and workforce programs.

Section 4 and 5 require SelectUSA to coordinate with state-level economic development organizations to increase foreign direct investment in semiconductor-related manufacturing and production, which directly benefits the semiconductor industry by promoting investment in fabrication, advanced packaging, and materials/equipment.

Section 2(3) encourages growth and competitiveness of U.S. production and manufacturing in emerging technologies, which includes semiconductors per Section 7(12)(B)(x).

Section 3 increases SBA 7(a) loan limits for small manufacturers, which includes semiconductor and hardware manufacturers classified under NAICS sectors 31-33, providing them greater access to financing.

Section 4(a)(1) requires covered integrated circuit products to be outfitted with chip security mechanisms before export, reexport, or in-country transfer, which imposes a cost on semiconductor manufacturers but also creates a market for security technologies; net benefit likely as it enables continued exports under enhanced security, supporting industry competitiveness.

Section 3(d) explicitly states that nothing in the section may be construed to authorize the implementation of any export fee on semiconductors, indicating the bill prohibits such fees and thus benefits semiconductor industry by preventing costs.

The bill establishes a whistleblower incentive program for export control violations, specifically mentioning leading-edge AI chips and export controls under the Export Control Reform Act of 2018 (Sec. 2 findings, Sec. 3). This benefits semiconductor companies by strengthening enforcement against illegal diversion of chips to adversaries, protecting their IP and market integrity.

Section 2(d) and Section 3(a)(3) explicitly mention semiconductor manufacturing as an emerging technology to be identified and promoted for veterans' education programs, providing a benefit to the semiconductors and hardware industry.

Section 2(1) states that U.S. export controls on semiconductor manufacturing equipment and advanced integrated circuits are critical for national security and the AI race with PRC, implying a benefit to U.S. semiconductor industry by protecting competitiveness. Section 3(b)(4)(F) requires analysis of impact on revenue and global market share of U.S. companies, suggesting the bill aims to assess and potentially strengthen controls that benefit domestic industry. Section 3(d)(2) mandates engagemen

Section 4(c)(1)(B) provides trainings on export controls, which benefits semiconductor firms that must comply with controls on advanced chips and manufacturing equipment.

The bill establishes a whistleblower incentive program for violations of export control laws, specifically targeting diversion of leading-edge AI chips to adversarial countries (Findings (1)). This benefits semiconductor companies by enhancing enforcement against illegal exports that undermine their market and national security.

Section 2(3) encourages growth and competitiveness of U.S. production and manufacturing in emerging technologies, which includes semiconductors per Section 7(12)(B)(x).

Resolution (3) and (6) affirm and call for continuation of U.S. Government efforts to deny China access to advanced chips and chipmaking equipment, and to ensure U.S. companies maintain priority access to cutting-edge AI chips, benefiting domestic semiconductor manufacturers.

Section 2(c)(1)(G) covers microelectronics, including novel chip architectures, memory systems, and interconnects, which directly supports semiconductor and hardware industries.

Section 2(2)(C) promotes policies to ensure the United States remains the global leader in developing and deploying cutting-edge technologies, which includes semiconductors as foundational to AI, IoT, quantum computing; Section 3(b)(12) addresses technical barriers to trade and country-specific standards for technology products; Section 3(b)(6)-(7) reviews challenges from state-directed investment, especially China, in manufacturing and digital trade.

Undersea cables rely on specialized hardware including semiconductors for repeaters and terminal equipment; Section 2(b)(1) and (e) involve evaluating export controls on items supporting undersea cables, which could benefit U.S. semiconductor and hardware firms by restricting adversary access and promoting domestic/allied sources.

Section 3(b)(1) involves end-use checks on controlled items, which include semiconductors and related equipment under export controls; more officers improve enforcement, reducing diversion and supporting legitimate sales for semiconductor firms.

SBIR/STTR extensions support small businesses in technology sectors, including semiconductors and hardware, by continuing access to federal R&D grants and contracts.

Same as above; semiconductor companies (e.g., Intel, Nvidia) depend on H-1B visas for engineering talent, and the bill increases access.

Division A, Title V, General Provisions, Sec. 541: Within 45 days of enactment of this Act, the Secretary of Commerce shall allocate amounts made available from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund for fiscal year 2026 pursuant to paragraphs (1) and (2) of section 102(a) of the CHIPS Act of 2022.

The bill includes provisions for critical minerals resilience and procurement of critical technologies (defined in section 316(a) to include semiconductors), with authorities to make grants, purchases, and commitments to purchase, and to waive regulations to expedite procurement. See Section 203(b) (Critical Minerals Resilience) and Section 203(i) (Waiver to Expedite Procurement).

Section 2(g)(4)(B)(i) creates a presumption of denial for export licenses to Entity List entities, which helps semiconductor firms by limiting exports of advanced chips to adversarial nations and reducing foreign competition.

The bill's focus on reducing license processing delays (Sec. 4(e)-(f), Sec. 5) directly aids semiconductor companies that frequently seek export licenses for chips and related technology.

Section 3(1)(F) supports development of quantum applications, including quantum-hybrid applications, to promote innovation and commercialization; Section 3(1)(G) supports other emerging technologies that could benefit from or benefit the development of quantum technology; Section 4(b)(1)(C) inserts 'in diverse sectors' after 'applications'; Section 5(e)(8) promotes understanding and adoption of quantum capabilities throughout the United States economy; Section 6(f)(8) facilitates interagency par

Title V, Sec. 541: Director of NSF must allocate CHIPS Act funds for workforce and education, and Sec. 542 requires continued application of negotiated indirect cost rates for DOC, NASA, and NSF, supporting semiconductor industry workforce development and research infrastructure.

Section 2(c)(2)(A) evaluates 'liquid cooling research and development needs, and the costs and benefits for high-performance computing,' which directly impacts semiconductor hardware used in AI servers and data centers.

Sec. 12(a)(4)(D) carries out research to facilitate development of quantum applications, including research on quantum supply chain enabling technologies such as lasers, cryogenics, and other supporting technologies; Sec. 12(b)(2)(C) identifies enabling technologies and supply chain essential to foster research and industrial competitiveness in quantum information science, engineering, and technology.

The bill includes provisions to examine semiconductor supply chain vulnerabilities and support AI hardware development, which benefits semiconductor manufacturers (see Sec. 101(c)(O): 'Examining, in consultation with the heads of other relevant Federal agencies, the vulnerabilities in the supply chain of hardware, including semiconductors and microelectronics...').

Critical materials are essential for semiconductor manufacturing; Section 4(a) establishes a pilot program to support domestic processing, enhancing supply chain security for chipmakers.

Sec. 4 amends the CHIPS Act to have the International Technology Security and Innovation Fund overseen by the Under Secretary for Economic Growth, Energy, and the Environment, benefiting semiconductor industry.