South Korea's SK Siltron to Liquidate U.S. SiC Subsidiary, Focus on Silicon Wafer Business Amid AI Chip Demand

SK Siltron, South Korea's only domestic silicon wafer manufacturer, has officially initiated the liquidation process of its U.S. subsidiary, SK Siltron CSS, which produces silicon carbide (SiC) wafers in Bay County, Michigan. The liquidation is expected to be completed within 2024 and marks a key step in a business restructuring agreed upon during asset sale negotiations with the Doosan Group. The Michigan facility will cease operations in phases, with most employees facing layoffs.

In 2019, SK Siltron acquired DuPont’s silicon carbide business for USD 450 million, finalizing the deal in 2020 to enter the SiC market. However, the SiC division has incurred continuous losses due to slowing global electric vehicle demand and industry-wide oversupply, contributing to the company’s 2023 consolidated net loss of KRW 293.6 billion.

This liquidation serves as a preparatory step ahead of the potential acquisition of SK Siltron’s silicon wafer business by the Doosan Group. Although the full sale has not yet been finalized, SK Siltron has already decided to divest its loss-making segment and fully refocus on its core silicon wafer operations.

Meanwhile, the company has officially commenced operations at its fourth Gumi plant, a KRW 2.3 trillion investment facility. The new plant increases wafer production capacity by 50%, capitalizing on surging 300mm silicon wafer orders driven by the AI chip market boom. This strategic shift is expected to strengthen SK Siltron’s competitiveness and solidify its position in the global semiconductor materials supply chain.