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DOE conditional loan for SK Siltron CSS to expand US SiC wafer production for EV electronics

April 06, 2024

The U.S. Department of Energy has announced a conditional commitment to SK Siltron CSS for a $544 million loan to expand American manufacturing of high-quality silicon carbide (SiC) wafers.

The project is expected to create up to 200 construction jobs in the build-out phase and up to 200 skilled operations jobs at full production at the SK Siltron CSS facility located in Bay City, Michigan. The facility is projected to be among the top-five manufacturers of SiC wafers globally. This project supports the Biden-Harris Administration’s goal that half of all new vehicles sold in 2030 are zero-emissions vehicles.

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. 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.

The project will help meet the growing market demand for EVs and establish a secure technology supply chain, which will create high-quality jobs and deliver new economic opportunities to surrounding communities. The company will partner with Delta College, less than a mile from the project site, through the Michigan New Jobs Training Program to train local workers for success in SiC wafer manufacturing.

The loan would be offered through LPO’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which supports domestic manufacturing of advanced technology vehicles, qualifying components, and materials that improve fuel economy. The loan is conditional and the company must satisfy certain technical, legal, environmental, and financial conditions before the Department enters into definitive financing documents and funds the loan.