Coherent’s SiC business completes $1B investment
Investment from Denso and Mitsubishi will help fund continued growth of the business
Coherent, a materials, networking, and laser company, has closed the $1 billion aggregate investment by Denso and Mitsubishi in Coherent’s SiC semiconductor business.
Under the terms of the transaction announced on October 10, 2023, Denso and Mitsubishi Electric each invested $500 million in exchange for a 12.5 percent non-controlling ownership interest in the business, with Coherent owning the remaining 75 percent.
Coherent has separated and contributed the business to a new subsidiary that will operate the business. Going forward, all operating and capital expenses of the business will be funded by the business. Coherent will control and operate the business, which will continue to be led by Sohail Khan, executive VP, Wide-Bandgap Electronics.
In connection with the transaction, the business has entered into arm’s-length long-term supply arrangements with Denso and Mitsubishi Electric that support their demand for 150 mm and 200 mm SiC substrates and epitaxial wafers.
“As I mentioned in October, we are excited to expand our strategic relationships with Denso and Mitsubishi Electric to capitalise on the significant demand for SiC,” said Vincent D. Mattera, chair and CEO, Coherent. “I believe that such a close relationship with two leaders in SiC power devices and modules is the best path forward to maximise shareholder value and position the business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position, while ensuring the development of a robust and scalable supply for the rapidly growing market for SiC-based power electronics, largely driven by the explosive growth of the global electric vehicle market.”
“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,” said Shinnosuke Hayashi, president and COO,rRepresentative member of the board at Denso.
Masayoshi Takemi, executive officer, group president, Semiconductor and Device for Mitsubishi Electric, said, “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 decarbonisation.”
