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DOE Boosts SKY Siltron’s Semiconductor Production With $544M Loan

Photo Courtesy SK Siltron

The United States Department of Energy (DOE) has loaned $544 million to SK Siltron to make silicon carbide (SiC) semiconductors for electric vehicles (EVs). SiC semiconductors are compound semiconductors composed of silicon and carbon, which help EVs charge more quickly and travel longer distances than traditional silicon-only semiconductors. 

SK Siltron specializes in manufacturing silicon wafers, which are a vital part of the semiconductor process. The Energy Department says the loan will create 200 new clean energy jobs at the SK Siltron facility in Bay City, Michigan.

Photo Courtesy U.S. Department of Energy

“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,” Jianwei Dong, SK Siltron CSS CEO, said in a press release. “Completion of our facility with support from ATVM funding not only strengthens our nation’s manufacturing technology but also fuels job creation, laying the foundation for innovation and economic growth in Michigan and the broader United States.”

The loan is a bid to bring more semiconductor manufacturing to the U.S. According to the Semiconductor Industry Association, more than 80% of the global superconductor industry is currently based in Asia.

By increasing SK Siltron’s capacity, the loan will help EVs get the chips they need quickly and domestically. This effort is critical when electric cars use twice the number of semiconductors as gas-powered vehicles, a spokesperson for the Commerce Department told the Scientific American.

Photo Courtesy SK Siltron  

The company’s semiconductors allow for higher efficiency and voltage, which can mean faster charging times and up to a 10% longer range. However, semiconductors made from high-quality SiC wafers are required to maximize these performance improvements. These wafers are currently under-supplied and demand is rising as electric cars, trucks, and SUVs become more popular.

Video Courtesy SK Siltron

Additionally, SK Siltron will partner with Delta College for a new clean energy jobs training program. The Michigan New Jobs Training Program hopes to enroll 300 students during the first two years. The initiative includes a new 15-week accelerated technician certificate or engineering degree program.

“Delta College’s goal is to be one of the leading educational institutions in America in semiconductor programming,” Michael Gavin, Delta president, said in a statement. “This new opportunity will be adapted by Delta to build a world-class talent pipeline to meet the semiconductor industry’s needs.”

Photo Courtesy Delta College

The new funding for SK Siltron is a great example of the federal government, private industry, and the education sector working together to help the U.S. reach its net-zero carbon emissions goal. Clearly, the community will benefit not only from a cleaner environment but also from an infusion of new jobs and financial gains.

“This project reinforces [the] Investing in America agenda to onshore and re-shore domestic manufacturing technologies that are critical to meeting the [current] administration’s ambitious goal that half of all new vehicles sold in 2030 are zero-emissions vehicles,” the Energy Department said in an official statement.

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