US DOE announces $481.5 million loan for semiconductor material manufacturing

The US Department of Energy has announced the approval of a $481.5 million loan to SK Siltron to build a facility in Michigan and expand manufacturing of semiconductor materials for electric vehicles in the USA.

us doe sk siltron semiconductors fin
Image: US Department of Energy

As part of the Biden-Harris Administration’s Investing in America initiative, the U.S. Department of Energy (DOE) has announced a $544 million loan ($481.5 million of principal and $62.5 million of capitalized interest) to SK Siltron CCS, LLC to expand American manufacturing of high-quality silicon carbide (SiC) wafers for power electronics for electric vehicles.

SK Siltron CSS aims to build a facility in Bay City, Michigan and is expected to be among the top-five manufacturers of SiC wafers globally, according to the DOE, which expects a boost to America’s manufacturing competitiveness from the investment.

The project will create up to 200 construction jobs in the build-out phase and up to 200 skilled, good-paying operations jobs at full production, according to the initiators. No timeline for the completion of the project has been given so far.

At the beginning of 2024, SK Siltron received preliminary approval for the project, with SK Siltron CSS CEO Jianwei Dong stating: “This project is an important step towards ensuring a resilient and robust supply chain in the United States, and we are proud to bolster domestic semiconductor manufacturing.” Now the loan promise is being fulfilled.

energy.gov

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