US DoE offers $544M loan to SK Siltron
Loan is meant to expand US manufacturing of SiC wafers for electric vehicles
SK Siltron has been awarded a $544 million conditional loan by the US Government's Department of Energy (DoE) to help increase SiC wafer production for electric vehicles.
The loan is made under the DoEs Advanced Technology Vehicles Manufacturing (ATVM) Loan Program.
The loan will increase manufacturing capacity at SK Siltron CSS’ Bay City, Michigan facility and create up to an additional 200 skilled jobs, according to the company, or an estimated total of 450 workers by project completion in 2027.
SK Siltron acquired DuPont’s Compound Semiconductor Solutions (CSS) business in March of 2020. Since then, SK Siltron CSS has focused on rapidly expanding its production capacity and has already increased by several multiples since the acquisition, including through the purchase and initial investment in the new Bay City, Michigan facility that is currently being outfitted.
In November of 2022, SK Siltron CSS announced a long-term supply agreement with Qorvo; in January of 2024, another long-term supply agreement was announced between SK Siltron CSS and Infineon Technologies.
“This project is an important step towards ensuring a resilient and robust supply chain in the United States, and we are proud to bolster domestic semiconductor manufacturing,” said SK Siltron CSS CEO Jianwei Dong. “Completion of our facility with support from ATVM funding not only strengthens our nation’s manufacturing technology, but also fuels job creation, laying the foundation for innovation and economic growth in Michigan and the broader United States.”
Final approval of the loan remains subject to completion of certain closing conditions; and if finalised, the financing will help SK Siltron CSS leverage its two existing Michigan manufacturing plants to address this market gap.
