U.S. Trade Representative Katherine Tai and South Korea’s Trade Minister Yeo Han-koo commemorated the 10th anniversary of the U.S.-Korea Free Trade Agreement (KORUS) with a visit to SK Siltron CSS, a U.S. subsidiary of South Korea’s SK Group. The visit also recognized the expansion of SK Siltron CSS’ Michigan operations that will support the fast-growing electric vehicle industry.
SK Siltron CSS produces a semiconductor wafer – a thin disc of silicon carbide crystal – that can be used to make semiconductor chips for components in electric vehicles. It recently began a $300 million expansion that will add a second R&D and manufacturing site in Bay County, Mich., and create up to 150 additional U.S. jobs, doubling its Michigan workforce and quadrupling manufacturing capacity in the next few years to meet increasing demand for EVs. The company has an existing site in Auburn, Mich., with a second site under development in nearby Bay City, Mich.
Ambassador Tai and Trade Minister Yeo met with top executives from SK Siltron, the parent company of SK Siltron CSS. SK Siltron, and its subsidiaries, are part of SK Group, South Korea’s second-largest conglomerate.
The tour and meetings marked the 10th anniversary of KORUS, a milestone free trade agreement that went into effect in March 2012. By allowing most industrial and consumer goods to flow between the U.S. and South Korea without tariffs, the agreement continues to strengthen economic ties between the allied nations.
“Beyond increased exports, the Agreement has also strengthened the investment ties between our two countries and that’s why I’m here today,” Ambassador Tai said at the event. “I am particularly excited that SK will be investing $300 million in Bay County over the next several years, which will double the number of people they employ in the state and increase our semiconductor production capacity. This partnership between our two countries is an excellent example of how we can harness the innovation and talent of our citizens to create a cleaner, more sustainable economy – while also creating good-paying jobs.”
Trade Minister Yeo commented on the positive impact for both nations as well.
“SK Siltron CSS is an exemplary case of mutually win-win investment cooperation between South Korea and the United States in the global supply chain, based on the decade-long Korea-U.S. Free Trade Agreement framework,” Trade Minister Yeo said. “We will continue to support cooperation with the United States to build a more resilient global supply chain in new industries, such as semiconductors as well as EV batteries and biopharmaceuticals.”
South Korea is one of the ten largest trading partners for the U.S. and a major source of foreign direct investment in U.S. businesses. In 2020 alone, foreign direct investment by Korean companies in the U.S. totaled more than $60 billion with Korea-based companies supporting more than 94,500 jobs in the U.S., according to U.S. Department of Commerce data.
“SK Siltron is honored to represent how positive Korea-U.S. trade relations are creating jobs, driving investments and building supply chains critical to our global economy,” said SK Siltron CEO Jang Yong Ho. “SK Siltron CSS and its Michigan team members, with the highest standards for quality and performance, are playing an important role in supplying the advanced materials needed to support the growth of EVs and speed the transition to more environmentally-friendly vehicles.”