DENSO CORPORATION has announced an investment of US$500 million in Silicon Carbide LLC, Coherent Corp.’s silicon carbide (SiC) business. accordingly, this will be separated into an independent subsidiary. Coherent established Silicon Carbide in April 2023. Silicon Carbide has been manufacturing SiC wafers. This investment will ensure a long-term stable procurement of SiC wafers to enhance the competitiveness of our electrification components. With this equity investment, DENSO will hold 12.5% equity stake in Silicon Carbide LLC.

Stable SiC Supply

As vehicle electrification accelerates as part of the global effort to reduce CO₂ emissions, semiconductor demand has also grown rapidly. Most importantly, SiC is a key material for devices that significantly contribute to reducing power loss, downsizing, and lightweighting of Battery Electric Vehicle (BEV) systems, owing to its superior performance in high-temperature, high-frequency and high-voltage environments compared to that of conventional silicon.

Through this investment in Silicon Carbide LLC, which has an excellent track record in SiC wafer quality and mass production capabilities, DENSO will secure a stable procurement of quality 150mm and 200mm SiC wafers. This will further strengthen the competitiveness of DENSO’s inverters, which drive and control motors of electric vehicles.

“Through this investment, we will secure a stable procurement of SiC wafers, which are critical for BEVs, and contribute to the realization of a carbon-neutral society by promoting the widespread adoption of BEVs,” said Shinnosuke Hayashi, President & COO, Representative Member of the Board at DENSO.

Bats for Sustainability

Meanwhile, Dr. Vincent D. Mattera, Jr., Chair and CEO at Coherent, said, “After a thorough review of strategic alternatives for our Silicon Carbide business, we determined that the creation of a separate subsidiary and the strategic investments from DENSO. …(This) is the best path forward to maximize shareholder value and position the Business for long-term growth.”

In addition, Mattera said, “The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position. At the same time, ensuring the development of a robust and scalable supply for the rapidly growing market for SiC-based power electronics, largely driven by the explosive growth of the global electric vehicle market.”
DENSO will continue to contribute to the realization of a carbon-neutral society by promoting the widespread adoption of electrified products in all regions around the world.