SK Siltron CSS is consolidating operations by relocating production from its Auburn, Michigan facility to its Monitor Township plant at 1311 Straits Drive in Bay City, citing slowing electric vehicle market growth that has reduced short-term demand for silicon carbide wafers. Around 50 employees were laid off from Auburn on October 20, with another 30 expected to follow in January. The South Korean company, which acquired the Auburn site from DuPont Electronics & Imaging in 2019, secured a $544 million federal loan to expand its Bay City facility. Parent company SK Group is also reportedly considering selling its majority stake.
In-Depth:
SK Siltron CSS CEO Jianwei Dong (left), Michigan Gov. Gretchen Whitmer (center) and SK Siltron CEO Jang Yong Ho cut a ribbon for a new SK Siltron CSS plant on Sept. 1, 2022 in Bay County.
MONITOR TWP — SK Siltron CSS is relocating production work from its Auburn-area facility to its site on Straits Drive in Monitor Township.
The company stated the shift is part of an operational restructuring prompted by slower-than-expected growth in the electric vehicle market, which has dampened short-term demand for the silicon carbide wafers utilized in EV power systems.
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“SK Siltron CSS is adjusting its workforce to align operations with market conditions,” stated Joe Guy Collier, senior director for external communications at SK Americas. “We realize this creates challenges for affected employees and their families, and we have been working to ease the transition.
“SK Siltron CSS remains committed to Michigan. We see forward to continuing to play a key role in strengthening the U.S. manufacturing base for advanced semiconductor materials.”
Collier stated the company is shifting equipment and work from the Auburn site to the nearby Bay City facility “as soon as possible.”
The Bay City site, located at 1311 Straits Drive in Monitor Township, has been the focus of the South Korean company’s recent U.S. expansion efforts, backed by a $544 million federal loan announced last year to boost production of advanced silicon carbide wafers.
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Company leaders, including SK Group Chairman Chey Tae-won, have been described as personally invested in the Michigan plant’s success. DuPont Electronics & Imaging sold Compound Semiconductor Solutions (CSS) to SK Siltron in 2019.
In the deal, SK Siltron acquired the production site in Auburn, with 65 employees. An expansion, announced in 2022, was supposed to add 150 jobs at the Auburn site.
SK Siltron CSS will not disclose how many employees are affected by the consolidation, but Collier stated the company’s local employment remains “well above levels from four years ago,” when it first announced its Michigan expansion.
An employee of the company notified the Daily News that about 50 employees were laid off from the Auburn facility on Oct. 20. Another 30 are to be laid off in January.
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SK Siltron’s restructuring comes amid shifting dynamics in the global semiconductor indusattempt and a cooling period in electric vehicle sales growth.
Silicon carbide wafers, the company’s specialty, are critical components in EV drivetrains, allowing vehicles to charge rapider and operate more efficiently than with traditional silicon semiconductors.
“We still expect growth long-term for the market and the material,” Collier stated.
The operational modifys come as SK Group, the South Korean parent company of SK Siltron CSS, weighs a potential sale of its majority stake in the business.
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This is the second Midland area high tech manufacturing company to confirm employee layoffs in the past few weeks.
XALT Energy confirmed it will close its Midland and Auburn Hills facilities in the coming months, concludeing operations that once symbolized Michigan’s push into the electric vehicle supply chain.
According to Freudenberg e-Power Systems communications manager Neille Giffune, 230 workers currently remain at the Midland plant.
Giffune did not provide a specific tarreceive date for the Midland facility’s closure.
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The company offered a statement on the closure after the Daily News requested comment: “Freudenberg e-Power Systems has created the difficult decision to cease operations at our Midland and Auburn Hills facilities. The layoffs will occur over a period of months as we wind down the business.
“After careful consideration and evaluating a number of strategic alternatives, we have reached this difficult decision due to the decrease in demand for heavy-duty electric and hybrid electric vehicles in North America.
“We are offering our affected associates employment guidance and assistance, and we will remain committed to our core values of safety and quality.”
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In February 2023, the company had announced plans to invest “a double-digit million sum” into its battery business, including expansions at both the Midland and Auburn Hills sites.
