COHR - Coherent's Silicon Carbide Semiconductor Business Completes $1 Billion in Investments From DENSO and Mitsubishi Electric | Benzinga
- DENSO and Mitsubishi Electric each invested $500 million for a 12.5% non-controlling interest in the silicon carbide semiconductor business
- Coherent entered into arm's-length long-term supply agreements with DENSO and Mitsubishi Electric to support their 150 mm and 200 mm substrate and epitaxial wafer demand
- The silicon carbide semiconductor business will fund future capital and operating expenses required for the continued growth of the business
PITTSBURGH, Dec. 04, 2023 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE:COHR), a global leader in materials, networking, and lasers, today announced that it has closed the $1 billion aggregate investment by DENSO CORPORATION and Mitsubishi Electric Corporation in Coherent's silicon carbide semiconductor business (the "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% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. 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 Vice President, 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 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," said Dr. Vincent D. Mattera, Jr., 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 maximize shareholder value and position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our ...