With the vigorous development of the electric vehicle industry, the demand for silicon carbide (SiC) power semiconductors is rapidly growing, and this material plays an important role in the charging speed and range of electric vehicles.
Denso and Mitsubishi Electric recently announced that they will jointly invest $1 billion to acquire a non-controlling interest of 12.5% in Silicon Carbide, an independent subsidiary of Coherent's silicon carbide business, further deepening their cooperation in the field of electric vehicle technology.
Coherent has always been a leading supplier of semiconductor materials, networks, and laser technology worldwide, while their silicon carbide business, Silicon Carbide, focuses on the manufacturing of products such as SiC wafers. Silicon carbide has attracted much attention in the field of electric vehicles due to its high efficiency and performance, which can significantly improve the performance and range of electric vehicles. This investment will help Japan Electric Equipment and Mitsubishi Electric to ensure a stable supply of silicon carbide, while also promoting the continuous development of silicon carbide technology.
Denso Corporation stated that this investment will help them purchase 6-inch and 8-inch silicon carbide wafers in a stable and long-term manner, further enhancing the competitiveness of their electric vehicle inverters. Inverter is a key component in electric vehicles, used to control the operation of electric motors, and its performance directly affects the performance and efficiency of electric vehicles.
Mitsubishi Electric Company is also optimistic about this investment, as they have been purchasing high-quality 6-inch silicon carbide substrates from Coherent Company. Through this collaboration, they will further strengthen their cooperation with Coherent, including jointly developing 8-inch silicon carbide substrates. In addition, Mitsubishi Electric plans to establish a new factory in Kumamoto Prefecture, expected to be operational in 2026, which will support the production of 8-inch silicon carbide wafers.
Vincent Mattera, CEO of Coherent, stated that this collaboration will accelerate the expansion plan of silicon carbide production and help them maintain a leading position in the silicon carbide field. He also mentioned that the company may sell more shares of its silicon carbide business within the next six months to raise up to $500 million in funds, while also signing additional supply agreements to meet growing market demand. This measure will help alleviate Coherent's financial burden and accelerate the promotion and development of silicon carbide technology.
The widespread application of silicon carbide technology is not only limited to the field of electric vehicles, but also has great potential in fields such as solar inverters, industrial drives, and power management. The market size of silicon carbide is expected to increase from the current $3 billion to $21 billion by 2030, and this growth trend will continue to drive innovation and development of silicon carbide technology in the coming years.