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Whitmer says 'massive economic uncertainty' is to blame on semiconductor project failure in Michigan

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Whitmer says 'massive economic uncertainty' is to blame on semiconductor project failure in Michigan
News

News

Whitmer says 'massive economic uncertainty' is to blame on semiconductor project failure in Michigan

2025-07-17 06:19 Last Updated At:06:30

LANSING, Mich. (AP) — Plans to build a semiconductor manufacturing plant in Michigan have fallen through and Democratic Gov. Gretchen Whitmer said Wednesday that “massive economic uncertainty” is to blame.

Bringing the company to Michigan was a key goal for Whitmer, a Democrat and potential 2028 presidential candidate who is in her final years as governor of the battleground state.

Domestic manufacturing is a priority of President Donald Trump's second administration and the president has leveraged tariffs as a way to incentivize companies to build and stay in America. While Whitmer did not mention Trump by name in her remarks, she pointed the finger at his tariffs that have shaken up the economy periodically this year.

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

Whitmer did not name the company but state records show California-based technology firm Sandisk Corp. was considering the sprawling 1,300-acre site near the city of Flint and forecasted 9,400 jobs and 5,000 construction jobs as a result.

Sandisk declined to comment on Wednesday.

The news quickly set off dueling political statements from Republicans and Democrats in the state.

The Trump administration is using tariffs and other tactics to bring manufacturing in critical areas like semiconductors back to the U.S., White House spokesperson Kush Desai said in a statement in response to Whitmer’s remarks.

Desai pointed to new semiconductor development in Texas and Arizona this year as wins garnered by the Trump administration in the chips and technology industry.

Other Democrats were quick to attribute the loss in Michigan to Trump’s economic policies Wednesday.

“Trump’s abandonment of long-term investments and chaotic tariff practices are not only raising costs, they just killed 10,000 good-paying jobs,” U.S. Rep. Kristen McDonald Rivet, a Democrat who represents the area, said in a statement. “This could have been a game-changer for mid-Michigan’s economy.”

Michigan House of Representatives Speaker Matt Hall, a Republican, said he supports Trump's strategy of relying on tariffs and incentives in the tax and spending bill to bring manufacturing development to America, not overseas.

“We simply need state leaders who are focused on making sure Michigan is the best possible place to build and grow,” he said.

Sandisk, known for making flash drives and memory cards, was looking to break ground on the project in 2025, according to documents provided by the Michigan Economic Development Corporation.

Michigan offered Sandisk $1.925 billion in cash grants, $250 million in workforce development funding and about $3.76 billion in tax breaks, according to documents dated to August 2024.

Congress passed the CHIPS and Science Act incentivizing technology development about halfway through former President Joe Biden's term. Even as Trump and Republican lawmakers have since threatened to put an end to the act, the Department of Commerce was collaborating with Sandisk on securing federal incentives through the package.

Whitmer in her statement said that the company is no longer looking to build a semiconductor facility anywhere in the U.S. In a speech in May, Whitmer said she had been advocating with the Trump administration directly to help bring a chip plant to the state.

FILE - Michigan Gov. Gretchen Whitmer speaks with former television journalist Gretchen Carlson, not shown, at an event on April 9, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

FILE - Michigan Gov. Gretchen Whitmer speaks with former television journalist Gretchen Carlson, not shown, at an event on April 9, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

NEW ORLEANS (AP) — Saddiq Bey scored 21 of his season-high 29 points after halftime, and the New Orleans Pelicans overcame a 25-point, third-quarter deficit to beat the Houston Rockets 133-128 in overtime on Thursday night.

Trey Murphy scored 27 points and Herb Jones had 18 points and a career-high eight steals before fouling out for the Pelicans, who've won three straight after winning just three of their first 25 games.

The 25-point comeback tied a franchise high and was the largest second-half comeback in franchise history, which dates back to the 2002-03 season.

Jordan Poole scored 15 points, capped by two free throws with 12 seconds left in overtime that put the Pelicans up 131-128. Houston's Reed Sheppard missed two shots from 3-point range in the final seconds before Bey got the rebound and hit game-sealing free throws with 2 seconds left in the extra period as a jubilant crowd that had been on its feet since the final minutes of regulation celebrated the unlikely comeback.

Kevin Durant scored 32 points and Alperen Sengun had 28 for Houston, but Sengun was unable to get off a shot for the win after dribbling into the paint in the final seconds of regulation.

Sengun missed two free throws with 43 seconds left in the fourth quarter, allowing New Orleans to complete the second-half comeback and tie it at 117 on Bey's driving finger roll with 31 seconds to play.

Rookie Derik Queen had 16 points, 12 rebounds and three blocks, and his 18-foot jumper sparked an 11-0 run early in the fourth quarter. The surge ended with Bey's dunk and pulled the Pelicans to 101-96.

Durant helped Houston dominate early by scoring 13 points in the first quarter, hitting his first five shots, including three 3s.

The Pelicans, by contrast, missed 20 of 29 shots in the paint during the first half.

Durant had 18 points by halftime, when Houston led 67-45.

New Orleans methodically trimmed its deficit to 13 in the third quarter before entering the fourth quarter trailing 99-83.

Rockets: At the Denver Nuggets on Saturday.

Pelicans: Host the Indiana Pacers on Saturday.

AP NBA: https://www.apnews.com/hub/NBA

New Orleans Pelicans guard Saddiq Bey, right, reacts after dunking against the Houston Rockets during the second half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

New Orleans Pelicans guard Saddiq Bey, right, reacts after dunking against the Houston Rockets during the second half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

New Orleans Pelicans guard Saddiq Bey (41) dunks against Houston Rockets guard Aaron Holiday (0) near Pelicans center Derik Queen (22) during the second half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

New Orleans Pelicans guard Saddiq Bey (41) dunks against Houston Rockets guard Aaron Holiday (0) near Pelicans center Derik Queen (22) during the second half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

New Orleans Pelicans guards Jose Alvarado, top, and Saddiq Bey, bottom, celebrate as they take the lead in the final seconds of overtime against the Houston Rockets during an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

New Orleans Pelicans guards Jose Alvarado, top, and Saddiq Bey, bottom, celebrate as they take the lead in the final seconds of overtime against the Houston Rockets during an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets center Alperen Sengun (28) and New Orleans Pelicans forward Zion Williamson, center right, battle for the ball during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets center Alperen Sengun (28) and New Orleans Pelicans forward Zion Williamson, center right, battle for the ball during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

New Orleans Pelicans forward Trey Murphy III, center, shoots against Houston Rockets center Steven Adams (12) during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

New Orleans Pelicans forward Trey Murphy III, center, shoots against Houston Rockets center Steven Adams (12) during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets forward Kevin Durant, lrft, shoots against New Orleans Pelicans forward Trey Murphy III, top right, during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets forward Kevin Durant, lrft, shoots against New Orleans Pelicans forward Trey Murphy III, top right, during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets forward Kevin Durant (7) shoots a 3-point basket against New Orleans Pelicans forward Trey Murphy III (25) during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets forward Kevin Durant (7) shoots a 3-point basket against New Orleans Pelicans forward Trey Murphy III (25) during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets forward Jabari Smith Jr. (10) shoots against New Orleans Pelicans guard Saddiq Bey (41) during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

Houston Rockets forward Jabari Smith Jr. (10) shoots against New Orleans Pelicans guard Saddiq Bey (41) during the first half of an NBA basketball game in New Orleans, Thursday, Dec. 18, 2025. (AP Photo/Matthew Hinton)

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