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THIS JUST IN: SK Siltron CSS’s New Manufacturing Plant in Bay City Strengthens Leadership in Michigan’s Semiconductor Industry

Company’s investment secures long-term commitment to production of key part of semiconductor supply chain in Michigan, across the United States

Governor Gretchen Whitmer joined business, state and local officials today to celebrate the grand opening of semiconductor wafer manufacturer SK Siltron CSS’s new manufacturing facility in Bay City. The company’s $300 million investment reinforces SK Siltron’s commitment to Michigan and further strengthens Michigan’s leadership role in the national semiconductor supply chain.

“SK Siltron’s commitment to Michigan will help us bring the semiconductor supply chain home, reduce shortages and backlogs, and create well-paying jobs for Michiganians in Bay City. Products manufactured by SK Siltron are the building blocks of countless products and industries: electric vehicles, solar panels, smartphones and 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 a skilled workforce, a growing economy and a business-friendly environment conducive to attracting projects from one of the most innovative companies in the world. I will work with anyone to continue to bring supply chains home, leverage our leadership in high-tech manufacturing, and create opportunities for Michiganders in every region.

Governor Gretchen Whitmer

Bay County-headquartered SK Siltron CSS announced in August 2021 plans to expand production of much-needed silicon carbide wafers, considered the future of the industry due to their ability to transfer energy efficiently. The company chose Michigan over competing states because of its skilled workforce and proximity to automakers. The project was supported by a $1.5 million grant from the Michigan Business Development Program and is expected to create a total of 150 jobs. To date, the company has hired over 100 employees for the new positions.

“SK Siltron CSS is excited to expand its presence in Michigan and strengthen its commitment to the entire Bay City community, while creating well-paying jobs and new investment opportunities. The exceptional people of Bay City and our strong local partners are the reason we have been able to grow so aggressively in the region. The support we have received is truly unparalleled. This significant investment in Bay City will further build the level of confidence not only with our customers, but across the entire EV value chain to accelerate the pace of EV adoption.

Jianwei Dong

Chairman and CEO of SK Siltron CSS

Demand for power semiconductors is growing rapidly as automakers enter the electric vehicle market and telecommunications companies expand 5G capabilities. SK Siltron CSS manufactures a special silicon carbide (SiC) insert that can be used in electric vehicles. SiC wafers are more efficient at handling high powers and conducting heat than normal silicon. When used in EV system components, this feature can allow more efficient transfer of electricity from the battery to the motor, increasing the range of an EV by 5-10%.

The project will result in well-paying, high-tech manufacturing jobs ranging from semi-skilled operators to engineers, and continue to strengthen Michigan’s automotive, mobility, and advanced manufacturing industries. The semiconductor industry already contributes $4.6 billion to the total gross regional project for the state of Michigan, with Michigan being among the top states in the nation for semiconductor manufacturing. The addition of new jobs and this significant investment by SK Siltron CSS in Michigan strengthens the company’s presence and creates a stronger path to future investment here in the state.

Today’s celebration comes just a month after President Joe Biden attended a virtual signing event for the state’s CHIPS Act Executive Directive. President Biden was joined virtually by U.S. Senators Debbie Stabenow and Gary Peters, and in person at the Hemlock Semiconductor manufacturing facility in Thomas Township by Michigan Governor Gretchen Whitmer and Congressman Dan Kildee. The executive directive marks a critical step toward increasing domestic chip production close to automakers and other manufacturers, helping to spur innovation, reduce inefficiencies and avoid costly delays.

To learn more about how Michigan is poised to play an even bigger role in the U.S. semiconductor industry, visit https://www.michiganbusiness.org/semiconductor/.

About the Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and primary advocate for business development, employment awareness, and community development, with a focus on growing Michigan’s economy. For more information about the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® travel information, your journey begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.