Gov. Gretchen Whitmer's goal to land a semiconductor factory in Michigan faces a setback
Whitmer blamed the setback on national economic conditions in a July 16 statement.
"Because of massive economic uncertainty at the national level, an advanced manufacturing company we were working with to bring a huge project to Michigan has decided not to move forward with plans to construct a semiconductor plant anywhere in the United States," Whitmer said. "Their board came to this decision amid national economic turmoil, which is at risk of worsening amid threats of even higher tariffs." The company was looking at Genesee County's Mundy Township for the project, according to Whitmer.
The location near Flint is the state's last large available site of more than 1,000 acres and one of the last so-called megasites in the U.S., according to the Michigan Economic Development Corporation.
Sandisk had its eye on the site and agreed not to pursue other locations while working with the Michigan Economic Development Corporation to come to Michigan, according to documents related to the project provided by MEDC. The company declined to comment.
The MEDC has referred to effort to lure Sandisk to Mundy Township as "Project Grit" and proposed a massive subsidy package for the company that included over $1.1 billion from Michigan's Critical Industry Program, which provides state funds to select companies that create jobs in the state, according to a letter of intent between the agency and the company. The agency also proposed state and local tax abatements and additional state funding for workforce development and site readiness, among other state support. In 2024, Michigan economic development officials approved a $250 million grant to prepare the site for an advanced manufacturing project. That came on top of $9.2 million in previously approved site readiness funding for the area.
The governor vowed to press forward. "We will continue to compete with other states and countries to bring cutting-edge factories home to Michigan so we can create economic prosperity for workers and communities and lead the next century of advanced manufacturing," she said. But Whitmer added that economic headwinds nationally will make that task more difficult.
Michigan House Speaker Matt Hall, R-Richland Township, pushed back hard on Whitmer's claim that national economic conditions are to blame, describing the latest news in the quest to land a factory at Mundy Township a "failure."
"President Trump's bold leadership is making it easier and more attractive than ever to create jobs in America. We simply need state leaders who are focused on making sure Michigan is the best possible place to build and grow," Hall said in a July 16 statement.
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State Sen. John Cherry, D-Flint, called Sandisk's decision "deeply disappointing" in a statement. "This project represented a generational opportunity to restore Genesee County's legacy as a manufacturing powerhouse and to position Mid-Michigan at the forefront of the global semiconductor industry," he said. Cherry said the company pointed to an uncertain economic climate "driven in large part by the Trump administration's chaotic tariff policies" in making its decision not to pursue a semiconductor factory.
Whitmer explained why landing a semiconductor plant is a top priority for her during a May 30 keynote address at the Detroit Regional Chamber's Mackinac Policy Conference.
"Being able to make chips top to bottom in America will allow us to stay on the cutting edge of AI. Whoever dominates this technology from design to production will dominate the 21st Century," she said. She set a timeline for securing a semiconductor plant by the end of 2026. Whitmer cannot run again due to term limits, and her successor will take office Jan. 1, 2027.
Whitmer said in a Feb. 23 interview that economic development plans in Mundy Township were among the items on her federal agenda as she advocates for Michigan priorities in Washington, D.C., though she wouldn't say at the time whether the project would depend on landing federal funding.
Contact Clara Hendrickson at chendrickson@freepress.com or 313-296-5743.
This article originally appeared on Detroit Free Press: Whitmer: Goal for Michigan semiconductor plant faces setback
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