Coherent's Silicon Carbide Chip Business to Receive $1 Billion Investment
October 10 2023 - 7:20AM
Dow Jones News
By Will Feuer
Coherent's silicon carbide business, which makes wafers used for
electric vehicles and other sectors, will get $1 billion in
investments from two Japanese automakers, a deal that values the
unit at some $4 billion.
Denso Corp. and Mitsubishi Electric will both invest $500
million each for 12.5% stakes in the unit. Coherent said it will
own the remaining 75% and continue to operate the business as an
independent subsidiary.
As part of the deal, Coherent also agreed to long-term supply
arrangements with Denso and Mitsubishi.
The investment ends Coherent's strategic review, which the
Saxonburg, Pa., company started earlier this year. Coherent said
the investment also will enable it to invest more into the silicon
carbide business, including in manufacturing capacity.
Many EV makers have been working to secure supply of silicon
carbide wafers, which help to hasten the charging time and extend
the range of EVs more than traditional silicon chips.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
October 10, 2023 07:05 ET (11:05 GMT)
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