U.S. Trade Representative: "SK Siltron CSS is the Best Example of Korea-U.S. Cooperation"

Yeohan Gu, Director General of Trade Negotiations, and Katherine Tai, U.S. Trade Representative, Visit SK Siltron CSS
SK Group "Contributing to Global Supply Chain and Carbon Reduction... Creating a 'Win-Win' Cooperation Model Between the Two Countries"

Catherine Tai, United States Trade Representative, is taking a commemorative photo with SK executives at the wafer production site of SK Siltron CSS plant located in Michigan, USA, on the 16th (local time). From the left, Jang Yong-ho, President of SK Siltron; Yeo Han-gu, Director General for Trade Negotiations; Catherine Tai, United States Trade Representative; Yoo Jung-joon, Vice Chairman of SK E&S; Jian Weidong, President of SK Siltron CSS.

[Asia Economy Reporter Oh Hyung-gil] SK Group's next-generation power semiconductor wafer factory invested in the United States is gaining attention as a product of economic cooperation between the two countries on the 10th anniversary of the Korea-US Free Trade Agreement (FTA).

According to SK Group on the 17th, Yeo Han-gu, Director General of the Trade Negotiations Bureau at the Ministry of Trade, Industry and Energy, and Katherine Tai, United States Trade Representative (USTR), visited the SK Siltron CSS plant in Michigan, USA, on the 16th (local time) to discuss ways to strengthen economic and technological cooperation between the two countries.

SK Siltron CSS is a company that produces silicon carbide (SiC) wafers, a core material for next-generation power semiconductors. It is a local subsidiary established by SK Siltron after acquiring DuPont's wafer business unit in the US in 2020. This event was held because the USTR side first proposed to the Korean government to hold a meeting at SK Siltron CSS to commemorate the 10th anniversary of the Korea-US FTA.

From SK, Vice Chairman Yoo Jung-joon of SK E&S, who is currently staying in the US, attended representing SK Group, along with Jang Yong-ho, CEO of SK Siltron, and Jianwei Dong, CEO of SK Siltron CSS.

After touring the wafer factory, the officials moved to the nearby Bay City plant, where new production facilities are under construction, for an on-site meeting.

The trade ministers of both countries unanimously stated, "Regarding the 10-year achievements of the Korea-US FTA, the SK Siltron CSS plant in Michigan, the birthplace of automobile manufacturing and the future of the automotive industry, best represents the future of the Korea-US economic alliance."

Katherine Tai emphasized, "Over the 10 years since the Korea-US FTA was signed, trade and investment cooperation between the two countries has been strengthened. SK Siltron CSS is the best example of Korea-US cooperation and the reason I am here today." She added, "This kind of partnership is an excellent example of how to create a cleaner and more sustainable economy while generating good jobs."

Director General Yeo Han-gu also evaluated, "SK Siltron CSS is a successful case of Korea-US supply chain cooperation, demonstrating that the two countries are closely collaborating on innovative green technologies such as semiconductors and batteries."

Vice Chairman Yoo and CEO Jang introduced SK Group's investment and business status in the US and stated, "SK plans to contribute to reducing about 3.3% of the local greenhouse gas emissions reduction target by 2030 through eco-friendly businesses in the US."

SK Siltron plans to invest $300 million, approximately 370 billion KRW, over the next three years to expand the Michigan CSS plant as demand for SiC wafers rapidly increases due to the surge in electric vehicle demand.

SiC wafers are materials that play a key role in improving energy efficiency in electric vehicles and others, as they have superior voltage resistance, heat resistance, and miniaturization capabilities compared to conventional silicon (Si) wafers. The global market size is expected to grow from about $61 million in 2020 to approximately $3.6 billion by 2030.

Catherine Tai, United States Trade Representative (right), visited the wafer production site at SK Siltron CSS plant in Michigan, USA, on the 16th (local time) and listened to explanations from officials.

Chairman Chey Tae-won’s Global Story Strategy... Accelerating Investment Focused on Eco-friendly Businesses

SK Group is expanding investments centered on eco-friendly businesses across the United States following the SK Siltron CSS expansion investment, in line with Chairman Chey Tae-won’s emphasized 'Global Story' management strategy. The Global Story strategy is the concept that SK must create a 'win-win' business model that earns respect and empathy from global local stakeholders.

SK On established a joint venture called 'BlueOvalSK' with Ford in the US and is investing $4.45 billion to build electric vehicle battery plants in Tennessee and Kentucky. SK E&S and SK Inc. jointly invested $1.6 billion last year in Plug Power, a hydrogen fuel cell and fuel supply solutions company.

Additionally, SK Inc. invested $350 million in business areas aligned with ESG management, such as bio, eco-friendly energy, and alternative foods. SK Hynix, which acquired Intel’s NAND business unit last year, plans to invest $1 billion to build a semiconductor research and development (R&D) center in Silicon Valley.

An SK Group official said, "We plan to continue creating cooperation models that contribute to revitalizing the economies of Korea and the US while helping solve global challenges such as stabilizing global supply chains and reducing carbon emissions."

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