SCALE Act

The Semiconductor Controls Adjusted to Limit Exports Act, or SCALE Act (HR8306), was introduced in the House of Representatives on April 15, 2026, by Rep. Moolenaar. It has been referred to the Committee on Foreign Affairs and the Permanent Select Committee on Intelligence. This early stage means the bill will undergo committee review, potential amendments, and votes before it can advance to the full House. The bill does not explicitly authorize or appropriate any specific funding amounts. Instead, it mandates the Secretary of Commerce, in coordination with the Director of National Intelligence, to implement a process for establishing annual standards for the sale of certain integrated circuits to specific countries. This regulatory framework aims to shape international markets and prevent foreign adversaries from achieving parity in AI hardware capabilities. The bill focuses on export promotion and control policies to maintain U.S. leadership in AI hardware and software. Structural winners, if this bill were to pass, would primarily be U.S. domestic semiconductor manufacturers and AI hardware developers, as the policy aims to limit foreign adversaries' indigenous production and ensure their reliance on U.S. supply chains. Conversely, companies heavily reliant on exporting advanced integrated circuits to countries deemed 'adversaries' could face restrictions. Without specific market data, it is not possible to identify specific ticker impacts. The bill's policy statement emphasizes providing business stability in export controls through a systematic and repeatable process, which could benefit companies by offering clearer guidelines for international trade in this sector. As of April 21, 2026, the bill is in the initial committee referral stage. Significant legislative steps remain, including committee hearings, potential markups, committee votes, and then votes by the full House and Senate, followed by presidential assent. The timeline for these actions is uncertain, and many bills introduced at this stage do not become law.