$300 million investment creates 250 new jobs and the potential for more
The world is hungry for chips. Computer chips. Michigan is growing into a powerhouse in the global semiconductor supply chain and shows no sign of slowing down. After receiving an investment of $300 million, Bay City’s SK Siltron CSS facility, which manufactures silicon carbide (SiC) wafers used in creating globally sought-after semiconductors, now employs 250 workers.
“SK Siltron’s commitment to Michigan will help us bring the semiconductor supply chain home, cut down shortages and delays, and create good-paying jobs for Michiganders in Bay City,” said Michigan Governor Whitmer.
“The products SK Siltron manufactures are the building blocks of countless products and industries: electric vehicles, solar panels, smartphones, and so much more—we cannot let China dominate this market. I am proud that Michigan was selected for this $300 million investment over several other states, proving that we have the skilled workforce, growing economy, and strong business-friendly environment conducive to attract projects from one of the world’s most innovative companies,” Whitmer said. “I will work with anyone to keep bringing supply chains home, build on our high-tech manufacturing leadership, and create opportunities for Michiganders in every region.”
Now, the company is poised to build on its $300 million investment with an additional $544 million in secured financing backed by the Biden-Harris Administration’s Department of Energy. These new funds will allow SK Siltron CSS to create up to an additional 200 skilled jobs, for an estimated total of 450 workers by 2027.
SK Siltron’s SiC wafers are used in numerous electronic applications, including electric and hybrid vehicles. SiC wafers handle high power and conduct heat more efficiently than their predecessor wafers. When used in electric vehicles, the SiC wafers provide increased efficiency in transferring electricity from the battery to the motor, boosting the driving range of an EV by 5-10%. These high-quality wafers are currently under-supplied, and demand is expected to rise along with EV sales.
Through the Michigan New Jobs Training Program, SK Siltron will partner with Delta College to train local workers in the SiC wafer manufacturing process.
Michigan’s semiconductor workforce ranks among the top ten in the nation, with job growth projected to grow by at least 11% in the next five years. The semiconductor industry contributes $4.6 billion in total gross regional product for the state of Michigan. For more information on the economic impact of semiconductors in Michigan, visit the Michigan Economic Development Corporation.
SK Siltron CSS is a US subsidiary of South Korea’s SK Siltron, a global leader in semiconductor wafers. The companies are part of SK Group, South Korea’s second-largest conglomerate, holding more than $30 billion in U.S. investments and assets and employing more than 6,000 Americans.
Key Facts:
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- $300 million investment creates 250 new jobs in Bay City.
- The new facility will bring the semiconductor supply chain home, reducing shortages and delays.
- $544 million in additional funds secured through the Biden-Harris Administration will lead to the creation of an additional 200 skilled jobs.
