SK Siltron CSS, a leading global manufacturer of silicon carbide (SiC) wafers, has recently announced its attainment of a conditional commitment for a loan of up to $544 million from the U.S. Department of Energy (DOE). This loan, to be issued under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program overseen by the DOE’s Loan Programs Office (LPO), aims to support the expansion of American manufacturing of high-quality SiC wafers, a crucial component in electric vehicle (EV) power electronics. The loan will facilitate the augmentation of manufacturing capacity at SK Siltron CSS’ Bay City, Michigan facility, ultimately generating up to 200 additional skilled job opportunities and an estimated total workforce of 450 employees upon project completion in 2027.
SK Siltron CSS CEO Jianwei Dong, Ph.D., emphasized the project's significance in fortifying the resilient and robust supply chain within the United States, underscoring the company's dedication to reinforcing domestic semiconductor manufacturing. As a result, the completion of the facility with ATVM funding not only strengthens the nation’s manufacturing technology but also propels job creation, fostering innovation and economic growth in Michigan and beyond.
The company has surpassed its initial job creation estimates, currently employing 250 highly skilled workers across its facilities in Bay City and Auburn, following a $300 million investment in the Bay City facility announced in 2021. The company’s strategic expansion serves to address the under-supply of high-quality SiC wafers crucial for maximizing the performance of semiconductors in EVs, a demand expected to escalate alongside increasing EV sales.
Tthe final approval of the loan is contingent upon the fulfillment of specific closing conditions. If approved, the financing will allow SK Siltron CSS to leverage its existing Michigan manufacturing plants to bridge the market gap. The company’s historic research and development for the manufacturing process has predominantly taken place at its facility in Auburn, Michigan, and the expanded Bay City plant will apply technology developed in Auburn to produce high-quality wafers to support the EV market.
SK Siltron CSS's acquisition of DuPont’s Compound Semiconductor Solutions business in March 2020 has positioned the company to meet the burgeoning global demand for power electronics components in high power density applications such as electric vehicles. Subsequently, the company has rapidly expanded its production capacity, including the purchase and initial investment in the new Bay City, Michigan facility, which is currently undergoing outfitting. This swift expansion has led to the establishment of agreements with leading industry customers, including a long-term supply agreement with Qorvo® announced in November 2022, and another long-term supply agreement with Infineon Technologies AG in January 2024.
