SK Siltron to Receive 770 Billion KRW Loan Support from US Government

Loan Main Contract Signed
Support for SiC Wafer Production in the US

SK Siltron's US subsidiary, SK Siltron CSS, has secured a loan support of $544 million (approximately 760.5 billion KRW) from the US Department of Energy for its investment in a silicon carbide (SiC) wafer factory in the United States.

According to industry sources on the 13th, SK Siltron CSS signed the main contract with the US Department of Energy under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program on the 5th.

Earlier, in February, the Loan Programs Office (LPO) of the US Department of Energy had conditionally approved a loan of $544 million to the company, and this contract formalizes that approval.

SK Siltron's U.S. subsidiary, SK Siltron CSS, has secured loan support worth 770 billion KRW from the U.S. Department of Energy for its investment in a silicon carbide (SiC) wafer factory in the United States. U.S. Department of Energy website

SK Siltron secured the loan support by meeting detailed contract conditions including specific technology, legal, environmental, and financial requirements. The loan consists of a principal of $481.5 million and interest of $62.5 million.

This loan support was established by the US government to expand the domestic electric vehicle manufacturing base. SK Siltron CSS is a US subsidiary of SK Siltron and produces SiC (silicon carbide) wafers needed for electric vehicles and energy storage systems (ESS). SK Siltron operates a Korea-US dual production system with manufacturing facilities in Bay City, Michigan, USA, and Gumi Plant 2 in Korea.

SiC wafers are considered a key material for power semiconductors used in electric vehicles as well as renewable energy and energy storage systems because they are more resistant to high temperature and high voltage environments than conventional silicon (Si) wafers.

Based on funds secured from the US Department of Energy and the Michigan state government, SK Siltron CSS plans to complete the expansion of its Bay City plant by 2027.

The LPO stated, "Once full-scale production begins at the SK Siltron CSS facility located in Bay City, Michigan, it is expected to create up to 200 skilled, high-wage operational jobs," adding, "This facility is expected to become one of the world's top five SiC wafer manufacturers and enhance the manufacturing competitiveness of the United States."

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