Michigan Loses 9,400 Jobs as Sandisk Abandons Semiconductor Plant Amid Tariff Turmoil

Michigan's efforts to establish a semiconductor manufacturing plant have been derailed, with Democratic Governor Gretchen Whitmer pointing to "massive economic uncertainty" as the primary cause. The state had been in discussions with a technology firm, Sandisk Corp., to build a sprawling 1,300-acre facility near Flint, which was projected to create 9,400 jobs and 5,000 construction jobs. Whitmer, who is in her final years as governor and is seen as a potential 2028 presidential candidate, had made bringing the company to Michigan a key priority.

The failure of the project comes amid a broader national economic turmoil, exacerbated by periodic disruptions caused by tariffs. Whitmer, without naming the president, criticized the tariff policies that have contributed to the economic instability. "Their board came to this decision amid national economic turmoil, which is at risk of worsening amid threats of even higher tariffs," Whitmer stated. The Trump administration has been using tariffs and other measures to incentivize companies to build and stay in the U.S., with recent developments in Texas and Arizona cited as successes in the semiconductor industry.

The news sparked a flurry of political reactions, with Republicans and Democrats in the state offering contrasting views. Democrats, including U.S. Rep. Kristen McDonald Rivet, blamed Trump's economic policies for the loss, stating that his "abandonment of long-term investments and chaotic tariff practices" had raised costs and killed potential jobs. Meanwhile, Michigan House of Representatives Speaker Matt Hall, a Republican, supported the administration's strategy, emphasizing the need for state leaders to focus on making Michigan an attractive place for manufacturing.

Sandisk, known for its flash drives and memory cards, had planned to begin construction on the project in 2025. Michigan had offered the company a substantial package of incentives, including $1.925 billion in cash grants, $250 million in workforce development funding, and about $3.76 billion in tax breaks. The CHIPS and Science Act, passed during Joe Biden’s term, had provided incentives for technology development, and the Department of Commerce was collaborating with Sandisk to secure federal incentives through this package. However, Whitmer's statement indicated that the company is no longer considering building a semiconductor facility anywhere in the U.S.

This setback highlights the challenges faced by states in attracting large-scale manufacturing projects amidst economic uncertainty. The failure of this deal underscores the broader economic instability that continues to impact major infrastructure and manufacturing developments across the United States. Whitmer's advocacy for the project, including direct engagement with the Trump administration, further emphasizes the significance of this loss for Michigan's economic development plans.