The U.S. Department of Energy (DOE) recently approved a $544 million loan (including $481.5 million in principal and $62.5 million in interest) to SK Siltron, a semiconductor wafer manufacturer under SK Group, to support its expansion of high-quality silicon carbide (SiC) wafer production for electric vehicles (EVs) in the Advanced Technology Vehicle Manufacturing (ATVM) project.
SK Siltron also announced the signing of a final agreement with the DOE Loan Project Office (LPO).
SK Siltron CSS plans to use funding from the U.S. Department of Energy and the Michigan State Government to complete the expansion of the Bay City plant by 2027, relying on the technological achievements of the Auburn R&D Center to vigorously produce high-performance SiC wafers. SiC wafers have significant advantages over traditional silicon wafers, with an operating voltage that can be increased by 10 times and an operating temperature that can be increased by 3 times. They are key materials for power semiconductors used in electric vehicles, charging equipment, and renewable energy systems. Electric vehicles using SiC power semiconductors can increase driving range by 7.5%, reduce charging time by 75%, and reduce the size and weight of inverter modules by more than 40%.
SK Siltron CSS factory in Bay City, Michigan
Market research firm Yole Development predicts that the silicon carbide device market will grow from US$2.7 billion in 2023 to US$9.9 billion in 2029, with a compound annual growth rate of 24%. With its competitiveness in manufacturing, technology, and quality, SK Siltron CSS signed a long-term supply agreement with Infineon, a global semiconductor leader, in 2023, expanding its customer base and sales. In 2023, SK Siltron CSS's share of the global silicon carbide wafer market reached 6%, and it plans to leap into the global leading position in the next few years.
Seungho Pi, CEO of SK Siltron CSS, said: "The continued growth of the electric vehicle market will drive new models that rely on SiC wafers into the market. These funds will not only promote the development of our company but will also help create jobs and expand the economy of Bay County and the Great Lakes Bay area."
Public information shows that SK Siltron CSS specializes in the research, development, manufacturing, and supply of next-generation power semiconductor SiC wafers. SK Siltron acquired the company from DuPont in March 2020 and pledged to invest $630 million between 2022 and 2027 to ensure a competitive advantage in the silicon carbide wafer market. SK Siltron CSS plans to start mass production of 200mm SiC wafers by 2025. Both SK Siltron and SK Siltron CSS are affiliated with South Korea's SK Group.
Post time: Dec-14-2024