The U.S. government has decided to support SK siltron with investment funding in the form of a loan to expand its production in the United States. SK siltron CSS currently operates a factory in Bay City, Michigan.
The Loan Programs Office (LPO) under the U.S. Department of Energy announced on Feb. 22 (local time) that it has conditionally approved a loan of US$544 million to enable SK siltron CSS to produce more silicon carbide (SiC) wafers in the United States.
SK siltron’s U.S. subsidiary, SK siltron CSS, manufactures SiC wafers, which are key materials for next-generation power semiconductors used in electric vehicles and energy storage systems (ESS).
The U.S. Department of Energy explained that while the demand for high-quality SiC wafers is expected to increase with the rise in electric vehicle sales, the current supply is insufficient. This loan project will help SK siltron CSS increase its supply.
The project is also expected to create up to 200 construction jobs and up to 200 high-wage, skilled jobs at the Bay City factory.
The U.S. Department of Energy stated, “The Bay City project will help bring back to the United States the manufacturing technology needed to expand the adoption of electric vehicles and supports President Biden’s strategy to strengthen the U.S. semiconductor supply chain.”
Furthermore, the department added, “The Bay City facility is expected to become one of the top five SiC wafer manufacturers in the world. This will enhance the U.S.’ manufacturing competitiveness in the field of future clean energy technologies and expand its global leadership.”