Lawmakers respond as Sandisk pulls out of Mundy Township semiconductor project

BY KYLE DAVIDSON, MICHIGAN ADVANCE

MICHIGAN—A California-based company set to utilize a Genesee County megasite for a massive semiconductor project has reportedly dropped the effort citing “massive uncertainty” at the federal level.

Michigan Gov. Gretchen Whitmer in a Wednesday statement said that a company whose preferred site was located in Mundy Township decided against building a semiconductor plant anywhere in the US.

“Their board came to this decision amid national economic turmoil, which is at risk of worsening amid threats of even higher tariffs,” Whitmer said.

State Sen. John Cherry (D-Flint), later identified the company in a statement as Sandisk Corporation.

Cherry called the decision “deeply disappointing,” saying the project represented a generational opportunity to restore Genesee County’s as a manufacturing powerhouse.

He also slammed the Trump administration’s tariff policies as the driver behind the decision, arguing the president’s levies policies have disrupted supply chains and created instability for investors, making it difficult for even the most promising projects to move forward.

“While this pause is a setback, it does not erase the progress we’ve made or the potential that still exists within the Advanced Manufacturing District of Genesee County. We remain committed to attracting transformative investments, supporting skilled trades  and technical careers, and ensuring that Genesee County remains a competitive and compelling destination for advanced manufacturing,” Cherry said.

However, Michigan Speaker of the House Matt Hall (R-Richland Township) argued the president’s tariffs aren’t to blame and are aimed at punishing companies for offshoring jobs while rewarding companies who build and invest in America.

“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. “That’s why House Republicans will continue to fight at the Capitol to cut unnecessary red tape, reverse the 2023 Democrat tax hike on small business and improve state government services to help as many job creators as possible choose Michigan as a permanent home.”

In April, the University of Pennsylvania’s Penn Wharton Budget Model predicted Trump’s tariffs would reduce the nation’s gross domestic product by 6% in the long run with wages seeing a 5% reduction. According to the model, a middle-income household will see a $22K lifetime loss.

When asked for comment, a Sandisk representative said the company is in a quiet period ahead of reporting their FY25 Q4 and year-end financial results.

“This quiet period prevents us from being able to respond,” the representative said.

US Rep. Kristen McDonald Rivet (D-Bay City)—whose 8th Congressional District includes all of Saginaw and Bay counties, almost all of Genesee County and parts of Midland and Tuscola counties—slammed the Trump administration, arguing the project would have brought thousands of jobs to the region.

“This is a gut punch to working families across our region. Trump’s abandonment of long-term investments and chaotic tariff practices are not only raising costs, they just killed 10,000 good-paying jobs,” McDonald Rivet said in a statement. “This could have been a game-changer for mid-Michigan’s economy. We need practical solutions, not chaos and dysfunction that cost us once-in-a-generation opportunities.”

Additionally, the Flint & Genesee Economic Alliance said while they were disappointed by the announcement, they remained 100% committed to attracting an advanced manufacturer to Genesee County.

“The Advanced Manufacturing District of Genesee County is the best site in North America for an advanced manufacturer to locate, and we will continue our important work together to attract a job-creating project that will benefit our region and the entire state for generations to come. We remain convinced that attracting an advanced manufacturer will create thousands of jobs, help boost and launch small businesses, create opportunities for young people and help us enhance national security by bringing our supply chain and jobs back to the US,” Tyler Rossmaessler, executive director of the agency, said.

During her keynote address at the 2025 Mackinac Policy Conference, Whitmer set her sights on securing a semiconductor plant and beginning construction by the end of 2026.

“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,” Whitmer said on Wednesday. “While I will keep doing whatever is in my power to build on Michigan’s economic momentum, there is no doubt that national economic uncertainty will make this harder. We will keep bringing people together to get big things done.”

Quentin Messer, CEO of the Michigan Economic Development Corporation said the state’s team can, with confidence say it presented the most compelling site, the most competitive business case and the strongest community impact partnership in the US.

“While economic factors outside of the state’s control ultimately proved insurmountable to this greenfield project moving forward in the US, we are proud of the tremendous work that resulted in Genesee County being the preferred, and final US location for what would have been a generational semiconductor fab investment,” Messer said.

The Economic Development Corporation remains on track in its site readiness efforts in Mundy Township, Messer said, with the Flint and Genesee Economic Alliance leading investment and work into making it a premier greenfield site.

“That momentum remains strong and will continue onward, putting Genesee County in a dynamic position to secure future advanced manufacturing investments that will bring good paying jobs and economic opportunity to our state,” Messer said.

READ MORE: Planning Commission takes step to prep land for massive new manufacturing project near Flint

This coverage was republished from Michigan Advance pursuant to a Creative Commons license.