On Thursday, SK Siltron CSS, a maker of semiconductor wafers owned by South Korean industrial conglomerate SK Group, announced that it will invest $300 million and create up to 150 high-paying, skilled jobs in Bay County, Michigan over the next three years. The investment, which will add a new production facility and double SK Silcon’s Michigan employee headcount, will support manufacturing and R&D capabilities for producing advanced materials used in electric vehicles (EV).
SK Siltron CSS manufactures a specialty wafer made of silicon carbide (SiC) that can be used in the semiconductor power components of electric vehicles. SiC wafers are more efficient at handling high powers and conducting heat than normal silicon. When used in EV system components, this characteristic can allow a more efficient transfer of electricity from the battery to the motor, increasing the driving range of an EV by 5-10 percent.
“The rise in popularity of electric vehicles has the auto industry searching for new innovative technologies to meet customer demand,” said Jianwei Dong, Chief Executive Officer at SK Siltron CSS. “Our Michigan expansion will allow us to manufacture advanced materials that can enhance the performance of an EV and support the growth of a more sustainable automotive future.”
The SK Siltron CSS expansion, pending state and local approvals, is part of a new domestic supply chain forming to provide the components required to support new environmentally friendly vehicles.
“As we build toward a more sustainable future, it is important that we create new, robust supply chains in the U.S. to support our corporations and the end consumer. The automotive industry has a tremendous opportunity with the rise of the electric vehicle, and we’re excited to see companies like SK Siltron CSS expanding to help support the transition to a green future,” said U.S. Secretary of Commerce Gina M. Raimondo.
The company will work closely with state and local partners to recruit and train potential employees. Of the new employees, 70 percent will be skilled workers while 30 percent will be professional engineers.
SK Siltron, which is a global leader in high-volume semiconductor manufacturing, acquired its Michigan silicon carbide wafer business in 2019, establishing SK Siltron CSS as a U.S. subsidiary. Silicon carbide wafers are used in EV system components , such as power converters, chargers and inverters. The electrical and thermal properties of silicon carbide can–in addition to the aforementioned EV range benefits–help reduce charging times, relax system cooling requirements and shrink power module size and weight.
In announcing the investment on Thursday, SK Group noted that its companies have invested more than $10 billion to expand U.S. operations and partnerships in hydrogen energy and fuel cells, EV battery manufacturing and technology, energy storage solutions, pharmaceutical manufacturing and development, advanced semiconductor materials, and new mobility solutions.
