Sandisk Corp., the California-based technology firm known for its flash drives and memory cards, has abandoned plans to build a semiconductor manufacturing facility in Michigan. The site being considered would cover 1,300 acres north of Flint. Sandisk expects it will produce around 9,400 permanent jobs and 5,000 temporary construction jobs. The cancellation of this project is a major blow for the metro area and the entire region. Local residents had dreamed that it would revitalize their struggling economy.
Michigan deepened the bidding war by offering Sandisk a gigantic incentive package totaling $1.925 billion in cash grants. On top of that, the state invested $250 million on workforce development and gave about $3.76 billion in tax incentives. These incentives were a big part of the state’s strategy to lure high-tech manufacturing jobs, like chip fabs, and strengthen regional economies. Sandisk had announced plans to break ground on this facility in 2025. They’re aligning with the U.S. Department of Commerce to help them make the case for incentives with a national chip package.
In all three cases, Sandisk has declined to comment on the cancellation of its plans. Michigan Governor Gretchen Whitmer on the announcement. She announced that Sandisk has abandoned continuing to pursue building semiconductor manufacturers throughout the country. Whitmer attributed the loss of this project to “massive economic uncertainty,” referencing the current challenges facing businesses amid fluctuating economic conditions.
Sandisk’s board took this big step in light of the national economic crisis. That situation is likely to get even worse as threats of further increases to tariff rates hang over the market. This comment underscores the reality of the economic climate that is out there making it difficult for companies to decide to invest in companies.
Kristen McDonald Rivet, the Democratic state representative of the district where Sandisk had intended to locate, expressed her irritation. She found it frustrating that her community had missed this opportunity. She went to town on the previous administration’s record on the economy. She continued, “Trump’s departure from long-term planning and his arbitrary, sledgehammer approach to tariffs aren’t just increasing costs. They just wiped out 10,000 quality jobs.” This feeling reflects long standing worries over the effects of national policy on local economies.
Matt Hall, Speaker of the Michigan House of Representatives, drove home the point that concentrated leadership is essential in the state. Now more than ever, Michigan needs state leaders who are committed to ensuring that it is the best place in which to build and grow a business,” Hall stated. He urged taking more initiative to bring in additional investments.
The lost opportunity comes at a particularly painful moment, as other states are enjoying success in attracting semiconductor investments. Kush Desai pointed to recent victories in Texas and Arizona as examples. He attributed these wins to the discussions initiated during the Trump administration, centered on efforts to reestablish semiconductor manufacturing in the U.S.
It would be a huge blow to Michigan. To convert fragile fortunes into solid gains it’s critical for state leaders to address economic unknowns that make investments think twice. Future campaigns should work to establish a more predictable climate. This added stability will give companies like Sandisk the confidence to make long-term, multi-million dollar investments in manufacturing within the state.
