Denso and Mitsubishi Electric Corporation have announced their plans to collectively acquire a 25% stake in the Silicon Carbide (SiC) business of Coherent, a U.S.-based semiconductor materials company.
🟦Denso and Mitsubishi Electric to invest in Coherent’s SiC business
Denso and Mitsubishi Electric Corporation have announced their intention to collectively acquire a 25% stake in the Silicon Carbide (SiC) business of Coherent. The combined investment from both companies amounts to 10 billion dollars.
Coherent is a semiconductor materials company based in Saxonburg, Pennsylvania, USA. In 2015, they were ahead of other companies in demonstrating an 8-inch SiC wafer. Coherent was acquired by II-VI Incorporated in 2022, after which II-VI Incorporated changed its name to Coherent.
🟦Aiming for stable procurement of SiC wafers
Silicon Carbide (SiC) is utilized in power semiconductors for power control, with its demand rapidly increasing due to the growth of electric vehicles and data centers. By investing in Coherent’s SiC substrate business, Denso and Mitsubishi Electric Corporation aim to secure a stable procurement of materials. Along with this investment, both companies have entered into a long-term supply agreement for SiC wafers with Coherent.
Mitsubishi Electric plans to open a new manufacturing facility in Kumamoto Prefecture, which will increase its SiC production capacity by five times. Meanwhile, Denso is anticipating a surge in demand for power semiconductors in automotive applications.
🟦Summary
Denso and Mitsubishi Electric Corporation have announced their intention to collectively acquire a 25% stake in the Silicon Carbide (SiC) business of Coherent, a U.S.-based semiconductor materials company. The two companies aim to ensure stable procurement of parts and materials by investing in the materials business, and to bolster their production capacity and technological development.
Major suppliers of SiC semiconductor substrates include Coherent, Wolfspeed, and Qromis. Both wafers have been increased from 6 inches to 8 inches and have begun mass production.
