U.S. Department of Energy finalizes the ATVM loan following evaluations of business viability and financial stability after conditional approval in February
Bay City, Michigan, November 12, 2024 – SK Siltron CSS announced today that it had signed a final agreement with the U.S. Department of Energy’s Loan Programs Office (LPO) for a $544 million loan under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program. The program aims to support the domestic production of silicon carbide (SiC) wafers, a critical material for next-generation power semiconductors.
The loan approval reflects the LPO’s robust due diligence of SK Siltron CSS’s manufacturing capabilities and business prospects in SiC wafers. SK Siltron CSS has been expanding development and production capabilities for SiC wafers at its Bay City, Mich., site.
SiC wafers offer significant advantages over traditional silicon wafers, operating at up to 10 times higher voltage and three times higher temperatures. As a result, SiC wafers are increasingly recognized as a key material for power semiconductors used in electric vehicles (EVs), EV charging equipment and renewable energy systems, driving their continued market growth. When used in EVs, SiC-based power semiconductors can increase driving range by 7.5%, reduce charging time by 75%, and reduce the size and weight of inverter modules by over 40%.
According to Yole Development’s recent “2024 SiC Power Semiconductor Market and Technology Report,” the SiC device market is expected to grow from $2.7 billion in 2023 to $9.9 billion by 2029, representing a compound annual growth rate of 24%.
With significant technological barriers to entry in SiC wafer production, only a few companies, including SK Siltron CSS, possess the required design and manufacturing capabilities. Leveraging its manufacturing, technology, and quality competitiveness, SK Siltron CSS secured a long-term supply agreement with global semiconductor leader Infineon in 2023, further expanding its customer base and sales. As a result, SK Siltron CSS achieved a 6% share of the global SiC wafer market in 2023 and aims to rise as a leading global player in the coming years.
“SK Siltron CSS is grateful to the Department of Energy for this opportunity. This announcement is the culmination of two years of work for our team. We appreciate the dedication that employees of CSS and the DOE have put in to driving this process to completion,” said Seungho Pi, CEO of SK Siltron CSS. He continued, “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. 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.”
SK Siltron CSS specializes in research, development, manufacturing, and supply of SiC wafers for next-generation power semiconductors. SK Siltron acquired the company from DuPont in March 2020 and has committed $630 million in investments between 2022 and 2027 to secure a competitive edge in the SiC wafer market. These investments include building a new, larger plant in Bay City, a short drive from its first location in Auburn, Mich. SK Siltron CSS plans to begin mass production of 200mm SiC wafers by 2025.
SK Siltron and SK Siltron CSS are part of SK Group, South Korea’s second-largest conglomerate with global companies in semiconductors, AI, energy, and life sciences. SK Siltron CSS is regarded as an example of success created by Korea-U.S. economic collaboration.