SK Siltron to Invest Over $600 Million in the US for Wafer Production Expansion Over 5 Years

[Asia Economy Reporter Jeong Hyunjin] SK Siltron will invest more than $600 million (approximately 700 billion KRW) over five years to increase wafer production.

According to the SK Siltron CSS submission posted on the U.S. federal government website on the 10th, the company stated in a CEO-signed document that considering the importance of silicon carbide (SiC) wafers for electric vehicles and the resulting increase in demand, it plans to invest over $600 million in capacity expansion over the next five years. This exceeds the previously announced investment of $300 million over three years made in July.

SK Siltron CSS is a local subsidiary established in Michigan after SK Siltron acquired DuPont’s wafer business in the U.S. in 2019. SK Group, along with SK Hynix, submitted semiconductor-related information to the U.S. Department of Commerce. SiC wafers are essential materials for producing power management semiconductors used in electric vehicles. The expanded investment scale is interpreted as a proactive move to address the shortage of automotive semiconductors supply.

SK Siltron CSS also added concerns that the capacity expansion plan could potentially face setbacks. The company mentioned, "The lead time for semiconductor manufacturing equipment is so long that it exceeds two years, and material and capacity expansion plans are lagging behind demand growth. There are also concerns about a shortage of skilled personnel and rising prices of construction materials."

Furthermore, SK Siltron CSS expressed expectations that the semiconductor industry support law being promoted by the U.S. will help resolve these concerns and requested additional support from the U.S. government.

This content was produced with the assistance of AI translation services.