Michigan celebrates an economic win as the US Department of Energy (DOE) announces a $544 million loan to the US branch of SK Siltron CSS. The company produces high-quality silicon carbide wafers, necessary technology for electric vehicles.
SK Siltron intends to use the investment to expand its Bay City, Michigan facility, improving manufacturing and adding new job opportunities.
The SK Brand Family
The parent brand of SK Siltron, SK Group, is based in Seoul, South Korea, and operates in renewable energy. They are the second-largest company group in the country. Their SK Siltron division is responsible for manufacturing semiconductor technology for Electric Vehicles (EVs).
The production of silicon wafers includes a highly technical process that involves melting and reforming silicon crystals, etching and polishing wafers, inspection, and much more. Operations originally began in Korea but have since expanded globally.
The United States houses two SK Siltron headquarters and manufacturing facilities, both located in Michigan. Other global sites include China, South Korea, Japan, Taiwan, and Paris.
SK Siltron in the United States
In 2022, SK Group purchased a facility outside of Bay City, Michigan, intending to expand its operation in the state. They already owned a site in Auburn and achieved significant growth in the area. At the time of the 2022 expansion, they received a $300 million investment to support the project.
The Bay City facility opening created 150 jobs and President Biden even gave it the thumbs-up in person, stating “they’re a first rate operation, and they’re going to create a lot of good-paying jobs in America.”
According to SK Siltron, with the new loan from the DOE, they expect their Bay City facility to rise to be among the world’s top five makers of silicone wafers.
The DOE Loan
SK Siltron is receiving a $544 million loan from the DOE to expand its operations out of Bay City, Michigan. The DOE has $710 million in loans for EV tech manufacturing at its disposal. This is a drop in the bucket compared to the $221.8 billion that the Biden administration has to support clean energy endeavors, but as of December 2023, the DOE has dolled out $34.43 billion in loans.
The remainder of the DOE’s current loan capacity, $165.9 million, is going to American Battery Solutions to expand its facilities in Ohio and Michigan.
With this new investment, SK Siltron is planning to add 200 construction jobs and 200 facility employment jobs. There is currently a market gap in silicon wafers supply, and this investment will go towards improving the American output.
The DOE has set forth conditions to receive the funding, and SK Siltron CSS must meet these prior to receiving the loan. These conditions include technical, legal, environmental, and financial criteria, but the company is confident.
SK Siltron is committed to growing its US home. They’re working closely with local partners, like Delta College, where new employees will receive training. Looking forward to 2025, the company expects to invest over $50 billion in its American facilities and create thousands of new jobs.
