Sandisk Abandons $63 Billion Chip Plant in Michigan Citing Economic Uncertainty
A Long-anticipated Semiconductor Facility Near Flint Has Been Shelved, With Michigan Leaders Blaming National Instability and Trump-era Tariff Policies.
Plans for a sprawling semiconductor plant in Michigan, expected to bring 10,000 jobs to Genesee County, have unraveled. California-based Sandisk Corp. officially pulled the plug on the $63 billion project this week.
Governor Gretchen Whitmer confirmed the withdrawal on Wednesday and attributed the company’s decision to what she called “massive economic uncertainty” triggered by recent national policy shifts.
“This was supposed to be a once-in-a-century investment,” Whitmer said in a statement. She referenced the years-long effort to court Sandisk and prepare the 1,300-acre site near Flint. She emphasized that the company’s board halted the project amid turmoil in the broader economy and growing threats of even higher import tariffs.
A Deal Years in the Making
Sandisk had identified Michigan as its top choice after an extended selection process. The state had already invested $260 million into developing the site and offered an incentive package totaling nearly $6 billion. This included direct cash grants, workforce training funds, and tax breaks.
Documents from the Michigan Economic Development Corporation showed that groundbreaking was expected in 2025. The facility would have supported 5,000 construction jobs and 9,400 permanent roles in engineering, operations, and logistics.
The site was praised for its proximity to key transportation routes, including rail lines and two major interstate highways. In a letter of support signed by dozens of local businesses, the project was called a chance to reclaim economic momentum in a region scarred by decades of job losses.
Political Blame Game
While Whitmer avoided naming specific individuals, her comments clearly pointed toward the Trump administration’s economic approach. Since returning to office, former President Donald Trump has renewed the use of tariffs and threatened to roll back tech manufacturing incentives such as the CHIPS Act. That federal program, launched under President Biden, allocated $52 billion to boost semiconductor production in the U.S.
Sandisk, which produces memory chips and storage devices, had been working with the Department of Commerce to secure CHIPS Act funding. However, growing political instability and Trump’s stated opposition to the program appear to have caused concern within the company’s leadership.
Whitmer said Sandisk is no longer considering any U.S. location for the facility.
“Economic conditions are changing faster than factories can rise,” she said. “The decision wasn’t about Michigan. It was about risk.”
A Battle of Economic Philosophies
Republicans in Michigan pushed back and argued that Trump’s strategies are meant to attract manufacturing projects.
“Tariffs are a lever, not a liability,” said Matt Hall, Speaker of the Michigan House of Representatives. He claimed that Trump’s tax cuts and tariff pressure are setting the stage for a domestic manufacturing boom. He pointed to new semiconductor activity in Texas and Arizona as evidence.
Others see the issue differently.
“Trump’s whiplash-inducing policies just erased 10,000 high-wage jobs,” said U.S. Representative Kristen McDonald Rivet, a Democrat representing the area. “This wasn’t just a factory. It was a future.”
Looking Ahead
Although Sandisk has backed out, the site is far from off the map.
Tyler Rossmaessler, head of the Flint-Genesee Economic Alliance, noted that several other advanced manufacturing companies had shown interest in the site. He emphasized that the location continued to meet key industry requirements and expressed confidence that the state’s investment would still serve a valuable purpose.
Messer echoed that sentiment and compared the site to a stage perfectly set for a show that didn’t open. “The curtain’s not down. We’re just waiting on the next act.”
Like a train that pauses before a long journey, the megasite may simply be waiting for the tracks ahead to clear. Once they do, the opportunity to revive Michigan’s industrial fortunes could be back on the table.
