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© Coherent
Business |

Coherent ready to accelerate SiC business expansion

Coherent has closed the USD 1 billion aggregate investment by Denso and Mitsubishi Electric Corporation in the company's silicon carbide semiconductor business.

Under the terms of the transaction announced earlier in October this year, Denso and Mitsubishi Electric each invested USD 500 million in exchange for a 12.5% non-controlling ownership interest in the business, with Coherent owning the remaining 75%. Coherent has separated the business into a new subsidiary that will operate it. 

Going forward, all operating and capital expenses of the SiC business will be funded by the business itself. Coherent will however control and operate it, and it will continue to be led by Sohail Khan, Executive Vice President, Wide-Bandgap Electronics.

In connection with the transaction, long-term supply arrangements were hammered out with Denso and Mitsubishi Electric that support their demand for 150 mm and 200 mm silicon carbide (SiC) substrates and epitaxial wafers.

“As I mentioned in October, we are excited to expand our strategic relationships with DENSO and Mitsubishi Electric to capitalize on the significant demand for silicon carbide,” says Dr. Vincent D. Mattera, Jr., Chair and CEO, Coherent, in a press release. “I believe that such a close relationship with two leaders in SiC power devices and modules is the best path forward to maximize shareholder value and position the Business for long-term growth.”

Mattera continues to state that the investments will be used to accelerate the company's capacity expansion plans.

“Through this strategic relationship with Coherent, we will secure a stable procurement of SiC wafers, which are critical for battery electric vehicles, and contribute to the realization of a carbon-neutral society by promoting the widespread adoption of BEVs in all regions around the world,” says Shinnosuke Hayashi, President & COO, Representative Member of the Board at Denso.

When incorporated into electric vehicles and industrial infrastructure, SiC-based power electronics have demonstrated the potential to significantly reduce carbon dioxide emissions and accelerate the transition to a cleaner and more energy-efficient world.

“We are pleased that this investment has been successfully completed. Going forward, we will further strengthen our collaboration with Coherent, leveraging their capabilities in development and manufacturing of SiC substrates, to achieve solid growth of our SiC power device business and contribute to a more sustainable world through decarbonization,” says Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device for Mitsubishi Electric.


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