July 23, 2026 / SemiMedia / — SK Siltron is liquidating its U.S. silicon carbide wafer subsidiary, SK Siltron CSS, and will gradually close the company’s manufacturing facility in Bay County, Michigan.

SK Siltron said significant changes in the electric vehicle market have created sustained challenges for its SiC business. The liquidation process is expected to be completed by the end of 2026.

The closure will affect approximately 140 employees at the Michigan plant. Most are expected to leave within about 60 days of the announcement, while a smaller group will remain temporarily to complete the wind-down process.

SK Siltron decided in 2019 to acquire DuPont’s SiC wafer operation for $450 million and completed the transaction in February 2020. The acquisition gave the company capabilities covering SiC crystal growth, wafer processing and epitaxial products for power semiconductor applications.

The company subsequently expanded its Michigan production capacity and planned to increase the supply of SiC wafers for electric vehicle power electronics. Market conditions later changed as EV growth slowed and capacity added by competing SiC material suppliers contributed to excess supply.

SK Siltron’s SiC operation recorded an operating loss of approximately 214.5 billion won in 2025. The company also recognized about 414.1 billion won in impairment losses related to the business, while consolidated net loss for the year reached 293.6 billion won.

The liquidation was discussed during negotiations involving the potential sale of SK Siltron to Doosan Group. Reports indicate that Doosan was primarily interested in the profitable silicon wafer operation and sought to exclude the loss-making SiC business. The final structure and timing of the broader ownership transaction have not been formally confirmed.

The closure removes a vertically integrated SiC wafer supplier from the market, but it does not indicate an immediate return to an industry-wide shortage. The near-term market remains characterized by inventory reduction, lower utilization rates, delayed expansion projects and intensified price competition.

Existing SK Siltron CSS customers will need to qualify alternative sources as the Michigan operation is wound down. This could create opportunities for other SiC substrate suppliers, including manufacturers in China, although automotive qualification requirements and technical barriers in 200mm wafers will limit how quickly orders can move.

SK Siltron is redirecting investment toward its core silicon wafer business. A new 300mm silicon wafer facility in South Korea’s Gumi 3 Industrial Complex is scheduled to begin phased operations in July 2026. The facility is part of a 2.3 trillion won investment program and is expected to add capacity equivalent to approximately half of the company’s existing 300mm output when fully operational.