Chip Dominance Act

A bill to establish Michigan as a dominant American semiconductor powerhouse; to create Chip Manufacturing Zones with aggressive tax, energy, and regulatory advantages; to mandate domestic supply-chain security and decoupling from adversarial nations; to build a world-class talent and research pipeline; to protect intellectual property; to prioritize Michigan-made chips in procurement; to create the Michigan Semiconductor Authority; and to unleash a sustained economic golden age of high-wage jobs, industrial resurgence, and technological independence for the people of Michigan.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Section 1. Short Title.

This act shall be known and may be cited as the “Michigan Chip Dominance and Economic Golden Age Act” or the “Michigan Semiconductor Security and Prosperity Act.”

Section 2. Legislative Findings.

The Legislature finds and declares all of the following:

(a) Semiconductors are the foundation of modern defense, automotive, artificial-intelligence, quantum, and consumer technologies. America’s dangerous reliance on foreign production, particularly in Taiwan and China, constitutes a national-security and economic emergency.

(b) Michigan possesses unmatched manufacturing heritage, engineering talent, energy resources, water access, and strategic location, making it the ideal state to lead American chip dominance.

(c) Achieving chip dominance will create tens of thousands of high-wage jobs, generate massive private investment, strengthen national security, revitalize the auto and defense industrial bases, and usher in a multi-decade economic golden age of prosperity for Michigan families and communities.

(d) Half-measures and gradualism are insufficient. Only decisive, preferential, and permanent state action—ultra-low taxes, guaranteed power, fast-track permitting, supply-chain mandates, and ironclad IP protection—will attract the capital and talent required to dominate.

(e) All actions under this act shall comply with the Constitution of the United States and the Constitution of the State of Michigan. Preference for American and Michigan content is a lawful exercise of the State’s spending and procurement powers.

Section 3. Definitions.

As used in this act:

(a) “Advanced semiconductor facility” or “fab” means a facility engaged in the fabrication, advanced packaging, testing, or research of semiconductors, including logic, memory, analog, power, radiation-hardened, and quantum-integrated chips.

(b) “Chip Manufacturing Zone” means a geographic area designated under this act that receives the full suite of tax, energy, permitting, and infrastructure preferences.

(c) “Adversarial nation” means the People’s Republic of China, any entity controlled by the Chinese Communist Party, or any other nation designated by the United States as a foreign adversary for semiconductor supply-chain purposes.

(d) “High Michigan/American content” means that at least 70 percent of the value of materials, equipment, and labor used in production originates in the United States, with priority given to Michigan sources.

(e) “Authority” means the Michigan Semiconductor Authority created in Section 10.

Section 4. Designation of Chip Manufacturing Zones.

(1) The Authority, in consultation with the Michigan Economic Development Corporation and local governments, shall designate multiple Chip Manufacturing Zones within 180 days of the effective date of this act. Zones shall be located to maximize access to power, water, transportation, and skilled labor.

(2) Within each Zone the following preferences shall apply automatically and permanently unless modified by subsequent statute:

(a) A 0 percent state corporate income tax rate and a 0 percent personal property tax rate on all qualified semiconductor property and equipment for a period of 25 years from the date of first production.

(b) Expedited permitting: all state and local permits required for construction and operation shall be deemed approved within 90 days unless the relevant agency issues a written denial based solely on clear and convincing evidence of a direct, imminent threat to public health or safety that cannot be mitigated.

(c) Guaranteed access to abundant, reliable, low-cost electric power from nuclear and natural-gas sources at rates competitively benchmarked to the lowest industrial rates in the United States, secured by long-term contracts backed by the State.

(d) Priority infrastructure funding for ultra-pure water systems, specialized wastewater treatment, heavy-haul roads, rail sidings, and port access.

Section 5. Aggressive Incentives Package with Strict American Content Requirements.

(1) The State shall offer refundable tax credits, grants, and matching funds equal to up to 30 percent of qualified capital investment for any company that commits to construct or expand an advanced semiconductor facility in Michigan and maintains high Michigan/American content.

(2) No incentive under this act may be awarded to any company that maintains significant supply-chain dependence on an adversarial nation. Existing recipients shall have 36 months to fully decouple or forfeit all remaining benefits and repay prior awards with interest.

(3) Preference shall be given to projects that secure Department of Defense, Space Force, or other federal national-security contracts for radiation-hardened or advanced chips produced in Michigan.

Section 6. Full Domestic Supply-Chain Buildout.

The Authority shall create targeted incentive programs for suppliers of silicon wafers, specialty chemicals, rare-earth materials, photolithography equipment, and other critical inputs to locate production in Michigan. Preference shall be absolute for suppliers that demonstrate complete independence from adversarial-nation sources.

Section 7. Michigan Semiconductor Research Corridor and Talent Pipeline.

(1) The State shall establish and fund a Michigan Semiconductor Research Corridor linking the University of Michigan, Michigan State University, Michigan Technological University, and industry partners to accelerate next-generation logic, memory, quantum-integrated, and AI-hardware semiconductors.

(2) The Authority shall oversee a massive expansion of apprenticeships, community-college certificate programs, and fast-track technical training focused on fab technicians, process engineers, and researchers. Priority recruitment shall target veterans, military spouses, and Michigan high-school and community-college graduates.

(3) Companies investing in Michigan-based semiconductor research and intellectual-property development shall receive enhanced R&D tax credits equal to 25 percent of qualified expenditures.

Section 8. Infrastructure, Housing, and Ecosystem Support.

(1) The State shall prioritize capital investments in clean-water treatment, ultra-pure process water, and dedicated power infrastructure required by chip fabs.

(2) Transportation corridors serving Chip Manufacturing Zones shall receive accelerated upgrades for heavy equipment and just-in-time logistics.

(3) Housing development near Chip Manufacturing Zones shall be coordinated under the Michigan Renaissance framework to ensure affordable, high-quality housing for workers and families.

Section 9. Regulatory Fast-Track, IP Protection, and Buy-American Mandate.

(1) All state agencies shall adopt industry-tailored, performance-based environmental and safety standards that maintain protection of public health while eliminating unnecessary delay.

(2) The Attorney General and Michigan State Police shall provide aggressive support, including rapid civil and criminal enforcement, to protect Michigan semiconductor companies from foreign intellectual-property theft, especially by adversarial nations.

(3) All state and local government procurement of semiconductors, electronic systems, and related equipment shall prioritize Michigan-made and American-made chips. Foreign adversarial-nation chips are prohibited in any state-funded system unless a documented national-security waiver is granted and publicly reported.

Section 10. Michigan Semiconductor Authority.

(1) There is created the Michigan Semiconductor Authority as an independent, results-oriented body with the power to designate Zones, award incentives, coordinate infrastructure, oversee workforce programs, and market Michigan globally as the premier U.S. semiconductor location.

(2) The Authority shall publish a public dashboard updated quarterly showing: fabs under construction or in production, private capital committed, high-wage jobs created, patents filed, percentage of domestic content achieved, and Michigan’s national ranking in semiconductor production capacity.

(3) The Authority shall report annually to the Governor and Legislature on progress toward the goal of making Michigan a top-5 U.S. semiconductor state within ten years.

Section 11. Funding and Economic Golden Age Commitment.

Revenues generated by the expanded semiconductor industry, including payroll taxes, indirect economic activity, and any federal matching funds, shall be tracked and publicly reported as evidence of the economic golden age this act is designed to produce. The Legislature declares its intent that the prosperity generated by chip dominance be broadly shared through rising wages, new businesses, and community investment across Michigan.

Section 12. Severability.

If any provision of this act or its application is held invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provision.

Section 13. Effective Date.

This act takes effect immediately upon enactment. Designation of the first Chip Manufacturing Zones and the standing up of the Michigan Semiconductor Authority shall occur within 180 days.

Enacting Section.

This act is ordered to take immediate effect.

Michigan Builds the Chips That Power America.

Chip Dominance. High-Wage Jobs. Economic Golden Age. Michigan First.