Coherent's Silicon Carbide Business Secures $1 Billion Investment

Saxonburg, Pa. - Coherent's silicon carbide business, a leading manufacturer of wafers used in electric vehicles (EVs) and other industries, is set to receive a significant boost with a $1 billion investment from two major Japanese automakers. Denso Corp. and Mitsubishi Electric have agreed to invest $500 million each, obtaining 12.5% ownership stakes in the business. This deal values the silicon carbide unit at approximately $4 billion.

The remaining 75% of the business will continue to be owned by Coherent, who will operate it as an independent subsidiary. In addition to the investment, Coherent has also entered into long-term supply agreements with Denso and Mitsubishi.

The investment represents a positive outcome following Coherent's strategic review earlier this year. By securing these funds, Coherent will be able to make additional investments in its silicon carbide business, particularly in expanding its manufacturing capacity.

Silicon carbide wafers play a crucial role in the EV industry, with many manufacturers looking to secure a reliable supply. These wafers enable faster charging times and extend the range of EVs beyond what traditional silicon chips can achieve.