SK Siltron CSS secured $544 million in federal funding to expand its silicon carbide wafer production in Michigan, strengthening the US push to build domestic supply chains for electric vehicle components.
The South Korean manufacturer finalized the Advanced Technology Vehicles Manufacturing loan from the Department of Energy after meeting technical and environmental requirements. The package includes $481.5 million in principal and $62.5 million in interest.
The funding adds to $77 million in Michigan state support for the Bay City facility, where SK Siltron plans to invest $640 million through 2026. The company currently produces 150mm wafers and targets mass production of larger 200mm versions by 2025.
Silicon carbide wafers are gaining traction in electric vehicles due to their superior power handling and efficiency compared to traditional silicon. The global market for silicon carbide power semiconductors is projected to reach $8.9 billion by 2028, up from $3.8 billion in 2024, according to Yole Développement.
The federal backing comes as the Biden administration seeks to reduce US dependence on Asian suppliers for critical EV components. SK Siltron’s expanded Michigan operations would help meet rising demand from automakers transitioning to electric vehicles.
