SK Corp Subsidiary SK Powertech Begins Full-Scale Production of Core Electric Vehicle Components

SK Powertech Busan New Plant Production Capacity Tripled
2026 Sales Target Over 500 Billion KRW Growth

Investment specialist SK Inc. announced on the 16th that its subsidiary SK Powertech has completed the trial operation of its new factory in Busan and has entered full-scale mass production.

SK Powertech is a company that designs and manufactures SiC (silicon carbide) power semiconductors. After acquiring management rights of SK Powertech last year, SK Inc. has driven the growth of SK Powertech by improving production processes and introducing new equipment through additional investments.

SK Powertech process engineers are conducting surface inspections of wafer products. Photo by SK Corp.

The new SK Powertech factory, which opened in March in Jangan-eup, Gijang-gun, Busan Metropolitan City, relocating and expanding from the existing Pohang factory, has significantly increased facilities such as ion implanters. Through process optimization, it plans to achieve an annual production capacity of 29,000 wafers (150mm/6-inch wafer standard), three times the previous capacity, by the fourth quarter. The four-story building covers approximately 1,750 pyeong (about 5,785㎡) and employs around 100 staff members.

This factory has begun full-scale mass production of orders from customers in the solar power and electric vehicle sectors, with more than half of the output expected to be exported overseas to countries including the United States, Japan, China, and Taiwan. SK Powertech aims to raise the factory's operating rate to 100% by the fourth quarter of this year.

The Busan SK Powertech factory is especially noted for its advantageous location for technology cooperation, talent acquisition, and exports. It is adjacent to partner institutions such as the Power Semiconductor Commercialization Center (PSCC) and the Korea Electrotechnology Research Institute, with which it has cooperative relationships for technology development and infrastructure sharing, as well as export infrastructure like Busan Port and Gimhae Airport.

SK Powertech aims to grow into a company with sales exceeding 500 billion KRW by 2026 through mid- to long-term strategies including ▲ securing global top-level product competitiveness ▲ full-scale entry into the electric vehicle market ▲ expanding foundry supply ▲ and proactive expansion of new factories.

Synergies arising from the SiC wafer business of SK Siltron, a subsidiary of SK Inc., are also expected to act as a strong competitive advantage for SK Powertech.

Power semiconductors are essential semiconductors that control current direction and power conversion in electric vehicles, electronic products, and 5G communication networks. Market research firm Omdia forecasts the power semiconductor market size to grow from $30.8 billion (approximately 41 trillion KRW) last year to $38.4 billion (approximately 51 trillion KRW) by 2026. In particular, SiC power semiconductors, regarded as next-generation power semiconductors, have advantages such as withstanding about 10 times the voltage and several hundred degrees of high heat compared to conventional silicon (Si) power semiconductors, and are expected to rapidly replace the existing market.

SiC power semiconductors can improve electric vehicle energy efficiency by about 7%, establishing themselves as a core component of electric vehicles. Since Tesla first introduced SiC power semiconductors in the Model 3 in 2018, currently one-third of all electric vehicles adopt SiC power semiconductors. With increasing demand for ultra-fast electric vehicle charging requiring high voltage, it is expected that most electric vehicles will adopt SiC power semiconductors in the future.

Kim Yang-taek, Head of SK Inc.'s Advanced Materials Investment Center, said, "Through the expansion of SK Powertech's new factory in Busan, we have prepared for the SiC power semiconductor business to grow in earnest. We expect to effectively meet the demands of global customers through the internalization of the value chain from SK Siltron's SiC wafer manufacturing to SK Powertech's SiC semiconductor design and manufacturing."