SK Siltron of South Korea Secures $544 Million Loan from the U.S. to Mass-Produce 8-Inch Wafers by 2025

SK Siltron, a South Korean company building a silicon carbide (SiC) wafer plant in the U.S., has received a loan of 770 billion Korean won ($544 million) from the U.S. Department of Energy.

According to industry sources, SK Siltron’s U.S. subsidiary, SK Siltron CSS, signed the main contract for the Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) loan program on November 5.

In February of this year, SK Siltron agreed to secure $544 million in commercial funding through the ATVM program. The loan, initially approved under conditional terms, was finalized after meeting detailed contractual conditions, including technical, legal, environmental, and financial requirements. The total loan amount includes $481.5 million in principal and $62.5 million in interest. Earlier, SK Siltron also received $77 million (approximately 105 billion Korean won) in support from the Michigan state government for its $300 million investment related to the expansion of the SiC wafer facility.

From 2021 to 2026, SK Siltron plans to invest $640 million in Bay City, Michigan, to increase the production capacity of SiC wafers by more than tenfold. Currently, only 150mm (6-inch) SiC wafers are being mass-produced. However, the company aims to start producing 200mm (8-inch) wafers by 2025 and is investing in research and development (R&D) to achieve this goal.

Compared to traditional silicon (Si) wafer materials, silicon carbide is renowned for its superior energy efficiency and durability. Due to its ability to handle high power while being lightweight, it has gained significant attention as a key technology to address challenges in the electric vehicle industry. According to market research firm Yole, the SiC power semiconductor market is expected to grow at an annual rate of 31%, from $3.8 billion this year to $8.9 billion by 2028.