White & Case Advises SK Siltron CSS on the Closing of its Loan Facility with the US Department of Energy

Global law firm White & Case LLP has advised SK Siltron CSS, LLC (CSS) and its parent, SK Siltron Ltd. (SK Siltron) in negotiating, closing and achieving first disbursement under CSS's US$544 million loan facility provided under the Advanced Technology Vehicles Manufacturing (ATVM) Program of the US Department of Energy's Loan Programs Office. The loan is being used to expand CSS's manufacturing of silicon carbide (SiC) wafers, a critical material for next-generation power semiconductors.

CSS was acquired by SK Siltron in 2020, making it part of the South Korea's second-largest conglomerate, the SK Group. Over the past several years, SK Siltron has dedicated significant investment toward CSS's leadership in SiC wafer manufacturing. The new loan will be used alongside those investments to complete CSS's new facility in Bay City, less than 10 miles from the company's first location in Auburn, Michigan.

SiC wafers offer significant advantages over traditional silicon wafers, operating at up to 10 times higher voltage and three times higher temperatures, providing advantages for electric vehicles (EVs), charging equipment and renewable energy systems. When used in EVs, SiC-based power semiconductors can increase driving range by 7.5 percent, reduce charging time by 75 percent, and reduce the size and weight of inverter modules by over 40 percent.

Commenting on the transaction, CSS's CEO Seungho Pi, expressed gratitude for DOE's support and noted that "The market for EV vehicles continues to grow with new models expected to enter the market soon that depend on silicon carbide wafers to power them. The funds from this loan not only enable the growth of our company but will help to bring jobs and expand the economy of Bay County and the Great Lakes Bay Region. This is a critical market to the US economy, and we are excited to be at the forefront of the industry."

"We're proud of our clients in achieving this milestone, which represents a significant advance in US manufacturing and in Korea-US economic collaboration," added White & Case partner Suzanne Perry, "and we are grateful for insights from colleagues and co-counsel across the globe in bringing this transaction together."

The White & Case team for the transaction was led by project development and finance partners Suzanne Perry (Washington, DC), Nandan Nelivigi (New York) and Dongho Lee (Seoul), and included associates Adam Conwell (New York) and Tom Robinson (New York/Abu Dhabi), Nicole Lim (Seoul), Flannery Sockwell (Washington, DC), and Yusra Salama (Houston). The transaction benefitted from specialized advice on project development, environmental, intellectual property, trade, antitrust and tax matters from attorneys across the firm, including partners Sungjin Kang, Seth Kerschner, Isaac Tendler, Cristina Brayton-Lewis and Eric Grannon, counsels Ketan Pastakia and Heidi Schmid, and associates Temi Ajibode, Amy Bagdasarian, Joanna Anyanwu, Dara Brown, Tim Sensenig and Brandon Dubov.

Warner Norcross + Judd LLP (Chris Meyer and Rob Davies) served as Michigan counsel to CSS and SK Siltron. Yoon & Yang LLC advised on Korean law. Pierce Atwood LLP assisted CSS with certain commercial contracts related to the transaction.

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