Whitmer Blames Trump Tariffs for Michigan Chip Project Collapse/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Plans for a multibillion-dollar semiconductor plant in Michigan have been scrapped, with Governor Gretchen Whitmer citing economic volatility and tariff threats under President Trump. The collapse of the Sandisk Corp. deal could cost the state over 14,000 projected jobs. Political leaders now clash over who’s to blame as Michigan’s economic future hangs in the balance.
Michigan Semiconductor Collapse: Quick Looks
- Project Cancelled: Sandisk Corp. backs out of 1,300-acre chip plant near Flint.
- Whitmer’s Statement: Blames “massive economic uncertainty” and looming tariffs.
- No Trump Mention: But indirect criticism aimed at his tariff-driven policies.
- Job Loss Impact: 9,400 permanent jobs and 5,000 construction jobs lost.
- Historic Incentives: Michigan offered $5.9B+ in grants, tax breaks, training funds.
- Federal Incentives Lost: Project linked to Biden-era CHIPS Act funding.
- Trump White House Responds: Touts semiconductor wins in Texas, Arizona.
- Democrat Reaction: Calls project loss a “self-inflicted wound” by Trump policies.
- GOP Stance: Republicans say Whitmer failed to make Michigan attractive enough.
- Company Position: Sandisk says it’s not pursuing any U.S.-based chip site.
Whitmer Blames Trump Tariffs for Michigan Chip Project Collapse
Deep Look
LANSING, MICH. — Michigan’s hopes of becoming a semiconductor hub took a major hit this week as a planned Sandisk Corp. chip manufacturing plant was abruptly canceled, sparking sharp political fallout and renewed scrutiny of national economic policy under President Donald Trump.
Governor Gretchen Whitmer, a Democrat and potential 2028 presidential contender, released a statement Wednesday attributing the project’s collapse to what she called “massive economic uncertainty”—a veiled reference to Trump’s turbulent trade and tariff strategy.
“Their board came to this decision amid national economic turmoil, which is at risk of worsening amid threats of even higher tariffs,” Whitmer stated.
A Lost Opportunity for Michigan
According to state documents, California-based Sandisk Corp. was in advanced talks to develop a massive 1,300-acre site near Flint, potentially generating 9,400 full-time jobs and 5,000 construction roles. The project was expected to break ground in 2025 and would have been among the largest tech infrastructure investments in Michigan history.
Whitmer had been personally lobbying both federal officials and Sandisk executives to finalize the deal, even engaging with Trump administration officials directly in May.
Yet on Wednesday, Whitmer disclosed that the company is no longer pursuing any chip plant in the U.S., delivering a blow to the CHIPS and Science Act—a key Biden-era initiative to boost domestic semiconductor production.
Billions on the Table
Michigan put forward an eye-popping incentive package to lure Sandisk:
- $1.925 billion in cash grants
- $250 million for workforce development
- $3.76 billion in tax breaks
State leaders viewed the investment as a long-term game-changer for Mid-Michigan’s economy, especially in post-industrial areas like Flint still recovering from economic decline.
Partisan Divide Widens
Political leaders wasted no time responding to the news, with Democrats laying blame squarely on Trump’s tariff-heavy trade approach, while Republicans defended it as necessary to rebuild U.S. manufacturing independence.
U.S. Rep. Kristen McDonald Rivet (D-MI) condemned the outcome as predictable and preventable:
“Trump’s abandonment of long-term investments and chaotic tariff practices are not only raising costs—they just killed 10,000 good-paying jobs.”
Meanwhile, Michigan House Speaker Matt Hall (R) backed Trump’s approach:
“We simply need state leaders who are focused on making sure Michigan is the best possible place to build and grow.”
The Trump Response
White House spokesperson Kush Desai responded quickly, emphasizing the administration’s success in boosting chip manufacturing in Texas and Arizona. While not directly addressing the Michigan deal, the message was clear: Trump’s policies, they claim, are working elsewhere.
“The president’s strategy is bringing chip production back to the U.S. in targeted, strategic regions,” Desai said.
The administration has made semiconductor independence a pillar of its second-term economic platform, leveraging both tariffs and tax policy to push tech manufacturing onshore.
CHIPS Act Under Pressure
The now-defunct Michigan project was one of the most visible examples of a CHIPS Act-backed collaboration, but since Trump returned to office, his administration and Republican lawmakers have increasingly questioned the act’s efficacy.
The Department of Commerce had been working with Sandisk on a federal incentive package through CHIPS—funding now likely off the table.
What Happens Now?
The economic blow to Michigan could reverberate beyond just jobs. The site was meant to help redefine the state’s identity in the global tech economy.
“This project was never just about a factory,” Whitmer said earlier this year. “It was about anchoring Michigan’s role in the next generation of American innovation.”
With that vision now shelved, the state faces not only the loss of potential jobs but also a stark reminder of how national policy choices can ripple through local economies.
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