SK Siltron receives $544M conditional loan from U.S. DOE
MID-MICHIGAN (WNEM) - SK Siltron CSS has received a conditional commitment from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) for a $544 million loan to expand manufacturing of high-quality silicon carbide (SiC) wafers for electric vehicle (EV) power electronics.
The announcement was made on Thursday, Feb. 22.
“In order to keep our population that we have, our kids that are graduating high school and getting on to college, keep them in this area. We need to encourage investments like SK Siltron,” said Terry Spencer, Monitor Township supervisor.
The project is expected to create up to 200 construction jobs for the build-out phase and up to 200 skilled, good-paying operations jobs at full production located at the Bay City facility. Additionally, the company will partner with Delta College to train mid-Michigan workers in SiC wafer manufacturing through the Michigan New Jobs Training Program.
“Today’s announcement is a huge win for Michigan that will grow our economy, bring critical supply chains and advanced manufacturing home, and put our state in the lead on the technology of the future,” Gov. Gretchen Whitmer said. “Today is about proving that we have the skilled workforce, growing economy, strong business-friendly environment, and competitive spirit to attract cutting-edge innovators and transformative projects. It’s about helping more individuals, families, businesses, and communities get the skills they need for good-paying jobs that you can raise a family on. It’s about building a Michigan where everyone can get a fair shot at a good life.”
EVs have twice as many semiconductors as vehicles with gasoline-powered engines, so the adoption of high-voltage architecture for will drive demand for SiC semiconductors as the EV market is expected to grow, the LPO said.
Semiconductors made from high-quality SiC wafers are required to maximize performance improvements, such as faster charging times and up to 10 percent longer range in comparison to traditional silicon semiconductors, the LPO said, adding the high-quality wafers are currently under-supplied and demand is expected to rise with EV sales.
If finalized, the project will help SK Siltron CSS leverage its Bay City and Auburn manufacturing plants to address the market gab, the LPO said. The expanded Bay City plant will use the technology developed in Auburn to create the high-quality wafers.
“When you get a business like this, this attracts other similar businesses that are probably involved in that kind of line of work in the supply chain. So, it’s encouraging that we have not only a business that has started up here but is expanding,” Spencer said.
In 2022, the company acquired and rehabilitated a facility in Monitor Township, and created up to 150 jobs for mid-Michigan workers. Michigan was chosen for the project over sites in Georgia, North and South Carolina, Tennessee, and Texas for its talent and proximity to automakers, the LPO said.
“As we all learned during the pandemic there’s a lot of things we need to start developing in America. No better place than Monitor Township to start developing those things. So, we need to continue to develop some different fields of businesses and we need to keep moving that forward,” Spencer said.
Before the Department of Energy enters into definitive financing documents and funds the loan, SK Siltron CSS must meet certain technical, legal, environmental, and financial conditions.
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