A semiconductor wafer manufacturer near Bay City, Michigan, once visited and touted by former President Joe Biden, will wind down its operations and close "based on market conditions," according to a spokesman for SK Siltron.

About 140 employees at the site were informed Thursday of the decision and that the effective end date of their employment would be within 60 days, the company said. The company is currently on a repayment plan with the state after failing to meet job retention goals tied to taxpayer-funded incentives, according to the Michigan Economic Development Corporation.

"Based on changes in market conditions, SK Siltron will wind down its U.S.-based SK Siltron CSS subsidiary," said Joe Guy Collier, a spokesman for SK Americas. "SK Siltron appreciates the hard work and dedication of its Michigan employees as well as the strong support from local, state and federal officials.”

SK Siltron CSS, a U.S. subsidiary of the Korean SK Group conglomerate, announced in 2021 that it would more than double its Michigan employee base through a $300 million expansion that included a new site in Bay City, creating 150 jobs. Biden visited the plant in 2022 to tout state and federal investments and hailed the investment as a "game changer."

"We're going to be the supply chain," Biden said. "The difference is going to be we're going to make that supply chain available to the rest of the world, but we're not going to be held hostage anymore."

SK Siltron made the investments in the Bay City facility a few years ago to "meet then-growing customer demand for a specialized product used in electric vehicles," Collier said.

"Significant changes in the EV market have created sustained challenges for the silicon carbide wafer business," Collier said. "SK Siltron CSS will work closely with employees and officials to ensure a responsible wind-down."

U.S. Rep. Kristen McDonald Rivet, D-Bay City, called the news "devastating" for workers in the region and she blamed the job losses on President Donald Trump's administration

“We had new plants and good-paying manufacturing jobs coming to mid-Michigan, but this administration’s chaotic tariffs, energy policy, and foreign wars are killing them," McDonald Rivet said in a statement. "This is the reality of his chaotic policies — disappearing jobs for people who desperately need them. We urgently need a course correction.”

SK Siltron CSS was awarded nearly $6 million in tax incentives by the state, including a $1.5 million Michigan Business Development Program grant as well as a 15-year State Essential Services Assessment exemption.

SK Siltron was awarded the full $1.5 million from the state after creating 150 qualified new jobs, MEDC spokeswoman Danielle Emerson said Friday.

But, in 2025, the company reported the elimination of some of those jobs, which triggered a state repayment notice or a six-month cure period, Emerson said.

The company was only able to re-establish 86 qualified new jobs and in April terminated its agreement with the state, Emerson said. As part of that termination, she said SK Siltron was required to repay roughly $640,000 to the state over four installments, with the first $160,000 installment made last month.

SK Siltron CSS intends to repay the state subsidies, Collier said.

"SK companies are responsible borrowers and partners," he said. "Siltron will provide the funds required to SK Siltron CSS to pay off its obligations before the SK Siltron CSS subsidiary is dissolved."

The company also drew down about $166.7 million of a $544 million loan from the federal government, according to the Department of Energy. SK Siltron paid off the loan last week, the department said Friday.

Citibank released SK Siltron from its mortgage at the facility site in Monitor Township last week, according to a filing with the Bay County register of deeds dated July 13.

As of Friday morning, leadership in Monitor Township, where the plant is located, still had not received notice of the closure, said township Supervisor Terry Spencer.

"It’s unfortunate," said Spencer. "As the township goes, we work really hard to help businesses get established in our township. Certainly, with SK Siltron, that was a great investment in our community.”

Bay County Executive Jim Barcia said Biden's visit was one of the few times he had spoken with SK Siltron leaders and that the company was not a member of the local chamber of commerce or otherwise active in the community.

"Some are more active, and some are less active and focus on their own activity," Barcia said Friday. "No judgment on it."

Barcia said he learned about the plant closure from news reports.

The loss of the plant "is not going to be devastating to our county," Barcia said, adding that he has worked to attract diverse business enterprises and manufacturers to support the economy.

"We're disappointed," Barcia said. "But we have a resilient workforce, and we will certainly continue to collaborate with all of our available resources to help these displaced workers."

The scaling back of business activities in Michigan for the Korean company started in November 2025, when SK Siltron announced it would close its plant in Auburn. At the time, the chip maker cited a slowdown in the EV market and said it would consolidate operations within the now-closing Bay County facility.

Bay Area Chamber of Commerce President and CEO Magen Samyn encouraged displaced workers to reach out to the local Michigan Works branch for free career support.

"We're committed to working with SK Siltron CSS, our local and state partners to explore future opportunities for the facility and help identify a use that supports jobs, investment and continued economic growth in Bay County," Samyn said.

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