A Billion-Dollar Boost to Silicon Carbide Innovation

Toyota Motor Corporation-affiliated supplier DENSO Corp. and Mitsubishi Electric Corp are joining forces to invest $1 billion in exchange for a 25% stake in Coherent Corp.’s silicon carbide business.

With each contributing $500 million, they will collectively hold a 12.5% stake, valuing the unit at approximately $4 billion.

Coherent Corp. retains a majority stake of 75%, and the entity will operate as an independent subsidiary.

Coherent has options to further sell units, potentially raising another $500 million in the six months following the deal’s closure and can establish additional supply agreements.

Silicon carbide technology is renowned for its efficiency, contributing to faster charging and extended range in electric vehicles, including Tesla’s.

Suppliers worldwide are investing in silicon carbide microchips, aligning with automakers’ aggressive EV goals.

This strategic investment is a significant step towards the future of automotive technology and green mobility.

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