Rock Hill Economic Development Setback As Pallidus Cancels Expansion
Rock Hill, SC – In a significant blow to local economic development, Pallidus Inc., a New York-based semiconductor manufacturer, has decided to cancel its planned expansion in Rock Hill, which was set to create 405 jobs and involved an investment of $443 million. This announcement marks one of the most substantial setbacks in recent years for York County as it pursues high-tech manufacturing opportunities.
What Happened?
The cancellation of Pallidus’ expansion project, which was first announced in February 2023, was reported earlier this week. The company plans to discontinue its efforts to set up a facility in Rock Hill, where it intended to produce silicon carbide wafers, a key material used in semiconductors. In addition to halting the South Carolina project, Pallidus has also disclosed plans to cut 44% of its workforce at its Albany, New York location, resulting in the loss of 37 jobs. This decision comes as part of a broader strategic shift for the company.
Where Was the Project Planned?
The intended Rock Hill facility was slated to occupy two buildings located at 1786 and 1800 Overview Drive. Combined, these buildings would have provided nearly 300,000 square feet of space for the company’s manufacturing operations. The properties are owned by an affiliate of Calare Properties, which has now announced that these buildings will be available for sublease or lease. Some modifications had already been made to the facilities in preparation for Pallidus, but they are now ready for new tenants.
When Was the Expansion Expected to Begin?
Pallidus was initially set to begin operations in Rock Hill during the third quarter of 2023. However, delays and subsequent economic reconsiderations led to the announcement of the project’s termination.
Why Did Pallidus Cancel the Expansion?
The company’s decision comes in response to shifting market conditions that affected its overall strategy. Economic challenges have prompted Pallidus to adjust its plans, impacting both its investment in South Carolina and its operational capacity in Albany. A spokesperson for the South Carolina Department of Commerce confirmed that they had not received any communication from Pallidus regarding its future plans, leaving uncertainty in its wake.
Reactions from Local Officials
Local economic development officials expressed disappointment at the news. Mitch Miller, interim director of York County Economic Development, stated, “It’s unfortunate that Pallidus has had to make these tough adjustments due to market conditions, and our thoughts are with those affected.” Miller reiterated York County’s commitment to assisting businesses and maintaining a hopeful outlook for future developments in the area.
The city of Rock Hill also released a statement emphasizing its intention to continue pursuing opportunities for business growth. “We have a lot to offer business headquarters, with valuable transportation and utility infrastructure, along with a high-quality workforce to support a variety of industry types,” the statement read, indicating ongoing recruitment efforts for Waterford Business Park and other sites.
Looking Ahead
The loss of the Pallidus expansion is a setback for Rock Hill but also serves as a reminder of the volatile nature of economic development. With active efforts to attract businesses and enhance the local workforce, officials remain optimistic about future opportunities that may arise in this growing region of South Carolina.
