During his first stop in Asia this May, President Biden emphasized the importance of the semiconductor industry and highlighted the new Samsung plant in Texas and its contributions to innovation and job creation.1 The increased demand for consumer products that contain chips and pandemic-related disruptions in production have led to a severe shortage of semiconductors over the past two years. Throughout the pandemic, this shortage has had profound effects not only on people’s daily activities, but also on economic growth and national security.2 This issue brief reviews the semiconductor industry’s global supply chain issues and their impact on the U.S. economy. It also discusses federal proposals to stimulate semiconductor manufacturing and innovation, with a focus on their tax elements.