November 18, 2024 /SemiMedia/ — Korea's SK Siltron has obtained a $544 million loan from the U.S. Department of Energy (DOE) to support its silicon carbide (SiC) wafer plant project in the United States, with the aim of achieving mass production of 8-inch wafers by 2025.

According to industry sources on November 13, SK Siltron's U.S. subsidiary, SK Siltron CSS, finalized the main contract for the Advanced Technology Vehicles Manufacturing (ATVM) loan program with the DOE on November 5.

Back in February, SK Siltron agreed to receive $544 million in commercial financing through the DOE’s ATVM program. The loan was initially conditionally approved, pending the fulfillment of specific technical, legal, environmental, and financial requirements. The final loan package includes $481.5 million in principal and $62.5 million in interest. Previously, SK Siltron also received $77 million in support from the Michigan state government for a related $300 million investment in the SiC wafer plant expansion.

From 2021 to 2026, SK Siltron plans to invest $640 million in its Bay City, Michigan facility to increase SiC wafer output by over tenfold. Currently, the company only mass-produces 150 mm (6-inch) SiC wafers but aims to begin 200 mm (8-inch) wafer production by 2025, with ongoing investments in research and development to achieve this goal.

According to market research firm Yole, the SiC power semiconductor market is projected to grow at a compound annual growth rate of 31%, increasing from $3.8 billion in 2023 to $8.9 billion by 2028.