SK Siltron could expand, add jobs in Bay County after federal loan agreement

MONITOR TWP, MI – SK Siltron CSS has received a federal loan from the U.S. Department of Energy that will allow it to expand its Bay County operations, adding jobs and growing its facility as the local plant becomes one of the top five global manufacturers of silicon carbide wafers.

The manufacturer announced this week it had signed the final agreement with the U.S. Department of Energy's Loan Programs Office for a $544 million loan , something that had been in the works for months and will allow for the expansion of the SK Siltron CSS operation at 1311 Straits Drive in Monitor Township.

"This is wonderful news for SK Siltron CSS, Monitor Township, and our region as a whole," Monitor Township Supervisor Terry Spencer told MLive/The Bay City Times. "The largest business investment in Bay County history of over $300 million dollars has just more than doubled down to the commitment to our community,"

Spencer said it is his understanding that the local investment will be utilized for additional expansion and the hiring of more employees, increasing both jobs and economic development at the local level.

"The impact this will have on the Bay Region is huge, and we are excited for their continuing success," he said.

Silicon carbide semiconductors are designed for high-voltage use and are critical components of electric vehicle, or EV, drivetrains, including inverters, and electrical distribution systems like onboard chargers and DC-to-DC converters.

There are more than four and a half million EVs on the road today, according to the U.S. Department of Energy. EVs contain about twice as many semiconductors as internal combustion engine vehicles. The adoption of high-voltage architectures will drive demand for SiC semiconductors globally, as the EV market is expected to grow significantly in the years to come.

SiC semiconductors allow for higher efficiency and higher voltage, which can mean faster charging times and up to 10% longer range when compared with traditional silicon semiconductors, officials with the energy department said. However, semiconductors made from high-quality SiC wafers are required to maximize these performance improvements. High-quality wafers are currently under-supplied, and demand is expected to rise with EV sales, which saw unprecedented progress in 2023.

$544M loan could put Bay City plant in top 5 makers of silicon carbide wafers globally

The project will help SK Siltron CSS leverage its two existing Michigan manufacturing plants to address this market gap. Historically, much of the research and development for the manufacturing process has occurred at the company's facility in Auburn. The expanded Bay City plant will use technology developed in Auburn to create the high-quality wafers.

"The market for EV vehicles continues to grow, with new models expected to enter the market soon that depend on silicon carbide wafers to power them," Seungho Pi, CEO of SK Siltron CSS, said in a statement. "These funds not only enable the growth of our company but will help to bring jobs and expand the economy of Bay County and the Great Lakes Bay Region. This is a critical market to the US economy, and we are excited to be at the forefront of the industry."

The company will partner with nearby Delta College through the Michigan New Jobs Training Program to train local workers for success in SiC wafer manufacturing, according to a news release from the Department of Energy.

Officials with Bay Future Inc., Bay County's economic development leader, said it's great news to see federal support for SK Siltron.

"Bay Future Inc. is thrilled to see the exciting progress made by SK Siltron CSS with the signing of a final agreement for a $544 million DOE loan," Bay Future President and CEO Jim Reaume said in an email.

"This significant investment underscores the importance of innovation and sustainable manufacturing in driving economic growth and strengthening Bay County's role in advanced manufacturing."