SK Siltron CSS to Close Michigan Plant, Laying Off 140 Workers
The closure of the silicon carbide wafer facility sparks a political battle over federal EV and trade policies.
SK Siltron CSS is winding down operations at its manufacturing facility in Bay County, Michigan, resulting in the layoff of approximately 140 employees. The move signals a sharp reversal for a site once positioned as a cornerstone of the domestic electric vehicle (EV) supply chain.
On July 16, 2026, the company announced it would begin a 60-day wind-down process, with the majority of positions expected to be eliminated by mid-September 2026. The plant specialized in the production of silicon carbide wafers, critical components used in semiconductor power systems for electric vehicles. While the company attributed the decision to shifting market conditions within the EV sector, the closure has quickly evolved into a political dispute.
Policy and Market Volatility
Democratic lawmakers have pointed to federal instability as the primary driver of the facility's collapse. U.S. Rep. Kristen McDonald Rivet and Sen. Elissa Slotkin attributed the closure to a "chaotic tariff regime," specific energy policy decisions, and the removal of incentives under the current administration. Rep. Rivet stated that the market conditions were created by "really bad policy from this administration."
Sen. Slotkin emphasized that volatile conditions make it difficult for companies to maintain long-term investments. "When you create these really volatile conditions... it is really hard to make investments and make decisions to stay in places," Slotkin said.
Industrial Implications
This closure underscores the fragility of the U.S. semiconductor and EV infrastructure. SK Siltron, a South Korean firm, established its U.S. subsidiary, SK Siltron CSS, after acquiring the Michigan business in 2019. In July 2021, the company had committed millions of dollars to expand production in Bay County to meet the anticipated surge in EV demand.
The economic fallout extends beyond the Bay County site. Reports indicate that a separate planned semiconductor project in Mundy Township, Genesee County—which was expected to generate 10,000 jobs—is no longer moving forward. These combined losses highlight the tension between high-level industrial goals, such as the CHIPS Act and EV mandates, and the immediate economic realities of trade policy and market demand.
Future Outlook
As the facility closes its doors in September, the event serves as a flashpoint in Michigan, a critical swing state where industrial stability is a primary political issue. Observers will be watching whether other semiconductor firms in the region signal similar instability or if federal adjustments to tariffs and energy incentives can stabilize remaining domestic investments. For now, the loss of the Bay County plant remains a stark example of the volatility currently facing the American green-tech manufacturing sector.