Whitmer says 'massive economic uncertainty' is to blame on semiconductor project failure in Michigan

Associated Press

a day ago

LANSING, Mich. (AP) — Plans to build a semiconductor manufacturing plant in Michigan have fallen through and Democratic Gov. Gretchen Whitmer said Wednesday that 'massive economic uncertainty' is to blame.
Bringing the company to Michigan was a key goal for Whitmer, a Democrat and potential 2028 presidential candidate who is in her final years as governor of the battleground state.
Domestic manufacturing is a priority of President Donald Trump's second administration and the president has leveraged tariffs as a way to incentivize companies to build and stay in America. While Whitmer did not mention Trump by name in her remarks, she pointed the finger at his tariffs that have shaken up the economy periodically this year.
'Their board came to this decision amid national economic turmoil, which is at risk of worsening amid threats of even higher tariffs,' Whitmer said in a statement.
Whitmer did not name the company but state records show California-based technology firm Sandisk Corp. was considering the sprawling 1,300-acre site near the city of Flint and forecasted 9,400 jobs and 5,000 construction jobs as a result.
Sandisk declined to comment on Wednesday.
The news quickly set off dueling political statements from Republicans and Democrats in the state.
The Trump administration is using tariffs and other tactics to bring manufacturing in critical areas like semiconductors back to the U.S., White House spokesperson Kush Desai said in a statement in response to Whitmer's remarks.
Desai pointed to new semiconductor development in Texas and Arizona this year as wins garnered by the Trump administration in the chips and technology industry.
Other Democrats were quick to attribute the loss in Michigan to Trump's economic policies Wednesday.
'Trump's abandonment of long-term investments and chaotic tariff practices are not only raising costs, they just killed 10,000 good-paying jobs,' U.S. Rep. Kristen McDonald Rivet, a Democrat who represents the area, said in a statement. 'This could have been a game-changer for mid-Michigan's economy.'
Michigan House of Representatives Speaker Matt Hall, a Republican, said he supports Trump's strategy of relying on tariffs and incentives in the tax and spending bill to bring manufacturing development to America, not overseas.
'We simply need state leaders who are focused on making sure Michigan is the best possible place to build and grow,' he said.
Sandisk, known for making flash drives and memory cards, was looking to break ground on the project in 2025, according to documents provided by the Michigan Economic Development Corporation.
Michigan offered Sandisk $1.925 billion in cash grants, $250 million in workforce development funding and about $3.76 billion in tax breaks, according to documents dated to August 2024.
Congress passed the CHIPS and Science Act incentivizing technology development about halfway through former President Joe Biden's term. Even as Trump and Republican lawmakers have since threatened to put an end to the act, the Department of Commerce was collaborating with Sandisk on securing federal incentives through the package.
Whitmer in her statement said that the company is no longer looking to build a semiconductor facility anywhere in the U.S. In a speech in May, Whitmer said she had been advocating with the Trump administration directly to help bring a chip plant to the state.