H.R. 5289 — Semiconductor Sovereignty Act

This section directs the Secretary of Commerce, acting through the Under Secretary of Commerce for Industry and Security and in consultation with other federal agencies as appropriate, to submit to Congress and publish in the Federal Register an initial report not later than 240 days after enactment of this Act that (1) identifies, to the extent practicable, critical and foundational inputs for semiconductor and similar technology manufacturing and research (i.e., photolithography equipment including photomasks, software, design and packaging processes, minerals, gases, chemicals, and related supply chains); trends since January 1, 1990, in offshoring, reshoring, domestic-foreign partnerships, and investments; offshoring locations; manufacturing, research, and trade bottlenecks; the role of U.S.-educated/trained foreign nationals and U.S. officials subsequently working for foreign entities including adversaries; domestic assets and intellectual property acquired by foreign entities including via bankruptcy; and recipients of federal funding such as under the CHIPS Act of 2022 who subsequently offshored; (2) determines trends in such offshoring through at least 30 years after enactment; (3) assesses implications for the U.S. national economy, national security, supply chains, allies and partners, adversaries (i.e., North Korea, Iran, China, Russia, and their proxies), and geopolitically vulnerable markets (e.g., Taiwan); and (4) identifies and recommends strategies, with implementing policy proposals, to disincentivize offshoring, increase domestic manufacturing and research (e.g., via tax incentives, subsidies, and foreign talent attraction/retention), enhance U.S. competitiveness, and strengthen oversight/reduce foreign acquisitions of domestic assets. The report prohibits inclusion of personally identifiable information on specified individuals. This section further requires the Secretary to submit and publish annual subsequent reports, beginning one year after the initial report, assessing whether prior strategies are outdated and providing updates if so, with annual determinations thereafter.