10.11.23
DENSO announced a minority investment of US$500 million (approximately JPY 74.5 billion) in Silicon Carbide LLC, Coherent Corp.’s silicon carbide (SiC) business, which will be separated into an independent subsidiary.
Silicon Carbide LLC, which was originally established by Coherent in April 2023, manufactures 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.
As vehicle electrification accelerates as part of the global effort to reduce CO2 emissions, semiconductor demand has also grown rapidly. 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.
“We are very pleased to establish a strategic relationship with Coherent, which has a world-class track record in SiC wafer manufacturing. 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 and COO, representative member of the board at DENSO.
Silicon Carbide LLC, which was originally established by Coherent in April 2023, manufactures 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.
As vehicle electrification accelerates as part of the global effort to reduce CO2 emissions, semiconductor demand has also grown rapidly. 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.
“We are very pleased to establish a strategic relationship with Coherent, which has a world-class track record in SiC wafer manufacturing. 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 and COO, representative member of the board at DENSO.