Biden Visits US SK Siltron Factory: "Game Changer... We Will Become the Supply Chain"

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] "This is a game changer."

President Joe Biden, who visited the SK Siltron CSS plant located in Michigan, USA, defined SK Group's investment as a "game changer" that will completely change the market landscape and reaffirmed his commitment to fostering domestic manufacturing. He emphasized that through building a semiconductor supply chain, the U.S. will no longer be held hostage by China’s supply chain.

On the afternoon of the 29th (local time), President Biden visited Bay City, Michigan, toured the SK Siltron CSS plant, and then gave a speech at the event. He said, "SK is making computer semiconductors here," and stressed, "Instead of relying on semiconductors made overseas in countries like China, the semiconductor supply chain (in the future) will be here in the U.S." He also evaluated SK's investment in Michigan as a "game changer" and praised it as the reason for his optimism about the future of American manufacturing.

This is the first time President Biden has visited a Korean factory in the U.S. The visit is interpreted as an effort to highlight exemplary cases of foreign companies investing in U.S. semiconductor manufacturing and to emphasize his efforts to revitalize the American economy.

On this day, President Biden reiterated legislative achievements such as the Chips and Science Act (CSA), saying, "We can change the future of this country. That is what we are doing now." He raised his voice, saying, "The whole world is investing here in the U.S. again." He then reaffirmed the U.S. commitment to building domestic supply chains, stating, "We will be the supply chain. The difference is that we will provide supply chains to the world and no longer be 'hostages' to (China)."

He also shared stories from his first face-to-face meeting with Chinese President Xi Jinping during the recent G20 summit. President Biden said, "We talked about supply chain issues," and mentioned that President Xi expressed dissatisfaction regarding the U.S. strategy to exclude China from supply chains in key industries such as semiconductors. He also referred to the period during the COVID-19 pandemic when semiconductor chip shortages halted automobile production lines, saying, "It accounted for one-third of inflation," and explained, "That is why we strongly pushed the Chips and Science Act."

[Image source=AP Yonhap News]

SK Siltron’s U.S. subsidiary, SK Siltron CSS, is a company that produces silicon carbide (SiC) wafers, a core material for next-generation power semiconductors. It was established after acquiring DuPont’s wafer business in the U.S. in 2020 for $450 million (approximately 600 billion KRW) and is regarded as one of the top three SiC wafer manufacturers alongside U.S. semiconductor companies Wolfspeed and II-VI. The Bay City plant visited by President Biden began mass production in September.

President Biden emphasized, "SK makes everything from semiconductors to electric vehicle batteries and pharmaceuticals," adding, "Their investment here is fundamentally to produce semiconductors used everywhere from smartphones to automobiles." He also expressed gratitude to SK and Korea, saying, "They are world-class, and they will create quality jobs here."

President Biden mentioned that SK Group Chairman Chey Tae-won, who visited the White House in July, promised an investment of $50 billion (approximately 66 trillion KRW). He then shared the situation at that time, saying, "I tested positive for COVID-19 and couldn’t come down from the third floor," and "I waved to Chairman Chey from the third-floor balcony and hummed, 'You’re coming to us, right?'" describing the necessity of a video conference.

Locally, attention is also focused on the fact that President Biden, having taken a breather after the November 8 midterm elections, visited Michigan while contemplating a 2024 re-election bid. Michigan, where the SK Siltron CSS plant is located, is a representative swing state in the U.S.

On this day, despite it being after the midterm elections, President Biden emphasized messages almost identical to those during campaign rallies throughout his speech. In particular, he courted the Democratic Party’s key support base, workers, by saying, "The most skilled workers," "The middle class built America, and unions built the middle class," and "I am a pro-union president." Regarding the increased possibility of a strike by the railroad union, he mentioned that it could be avoided. After some unions rejected a mediation agreement during negotiations, Congress has announced its intention to intervene.