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Coherent Corp. announced that following a comprehensive search, its Board of Directors has appointed Jim Anderson, an established industry executive with a proven track record of driving innovation and leading business transformations, as the Company’s new Chief Executive Officer, effective today. Mr. Anderson also joins the Company’s Board of Directors.
Mr. Anderson joins Coherent from Lattice Semiconductors (“Lattice”), where he was President, Chief Executive Officer, and a member of its Board of Directors. As CEO, Mr. Anderson was responsible for driving Lattice’s corporate strategy and strengthening the Company’s product roadmap, achieving record operating profits and gross margins. He succeeds Dr. Vincent D. (“Chuck”) Mattera, Jr., who, as previously announced, is retiring as Chair and CEO of Coherent.
“Jim’s business acumen and technical capability, coupled with his extensive experience transforming complex global businesses to deliver above-market growth and profitability, make him the ideal leader to steer Coherent through its next chapter amidst a rapidly changing market,” said Enrico DiGirolamo, Board Chair. “I am confident that Coherent will benefit from Jim’s operational expertise, innovation-first approach, and in-depth knowledge of our market and platform, as we capitalize on the strong market demand we see across our AI-related datacom portfolio and improving industrial market, while leveraging our diversification strategy that continues to serve us well.”
“I am deeply honored to join Coherent, a company I have long admired, as its next CEO,” said Mr. Anderson. “With cutting-edge innovation, an industry-leading platform, and an intense focus on the customer, Coherent is exceptionally well positioned to build on its existing momentum and deliver enhanced profitable growth over the long term. I look forward to joining the leadership team and Board at this pivotal moment in the Company’s history as we work together to realize Coherent’s enormous potential and drive value for all stakeholders.”
“Chuck Mattera has been in and around this industry for almost half a century, conceptualizing and directing the acquisition and business development strategy that made Coherent the multi-billion dollar global entity it is today,” said Mr. DiGirolamo. “Chuck thoughtfully forged meaningful relationships with employees, customers, suppliers, government officials, key partners, and shareholders that established a values-based foundation.” DiGirolamo added, “On behalf of the Board, I have the privilege of thanking Chuck for his many years of visionary leadership, tireless execution, and energetic commitment to redefining the possibilities of our industry. We all look forward to learning about the next chapters of Chuck’s already accomplished story.”
About Jim Anderson
Prior to joining Lattice in 2018, Mr. Anderson was senior vice president and general manager of Advanced Micro Devices’ Computing and Graphics business group. He previously held leadership positions in general management, engineering, sales, marketing, and strategy at companies including Intel, Broadcom (formerly Avago Technologies), and LSI Corporation.
Mr. Anderson serves on the Board of Directors of Entegris, EdgeQ, and Lumotive, as well as on the Board of Directors of the Semiconductor Industry Association, the MIT Sloan Americas Executive Board, the Electrical and Computer Engineering Advisory Board at Purdue University, and the Dean’s Advisory Board for the College of Science and Engineering at the University of Minnesota. Previously, he was a director at Sierra Wireless.
Mr. Anderson holds an MBA and Master of Science in electrical engineering and computer science from the Massachusetts Institute of Technology, a Master of Science in electrical engineering from Purdue University, and a Bachelor’s degree in electrical engineering from the University of Minnesota.
Original – Coherent
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Coherent Corp. announced that it secured $15 million in funding from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 that provided the Department of Defense (DoD) with $2 billion to strengthen and revitalize the U.S. semiconductor supply chain.
One of the key objectives of the CHIPS program is to nurture ecosystems that reduce risk, incentivizing large-scale private investment in production, breakthrough technologies, and workers. To that end, the DoD, through the Naval Surface Warfare Center Crane Division and the National Security Technology Accelerator, established eight Microelectronics Commons regional innovation hubs in September, including the Commercial Leap Ahead for Wide-Bandgap Semiconductors (CLAWS) Hub based in North Carolina and led by NC State University.
As a member of the CLAWS Hub, Coherent will receive $15 million to accelerate the commercialization of next-generation wide- and ultrawide-bandgap semiconductors, namely, silicon carbide and single-crystal diamond, respectively.
“We are excited to be recipients of funding from the CHIPS Act, delighted to be part of the CLAWS Hub, and proud to help the U.S. establish a strategic, long-term leadership position in these critical next-generation semiconductor technologies,” said Sohail Khan, Executive Vice President, Wide-Bandgap Electronics.
“Wide- and ultrawide-bandgap semiconductors enable the electrification of transportation, including road vehicles, high-speed trains, and mobile industrial machinery. They also enable smart power grids to efficiently respond to fluctuations in energy demands by regulating the delivery of electricity from conventional and renewable sources to distribution networks, as well as to and from utility-scale power storage and microgrids.”
In addition to DoD requirements for high-voltage, high-power applications and systems including hybrid electric vehicles (HEVs), more electric aircraft (MEA) components, directed energy, Navy vessel power systems, and all-electric ships, silicon carbide power electronics are increasingly recognized for their potential to greatly improve the energy efficiency of artificial intelligence (AI) data centers and traditional hyperscale data centers, where power consumption is growing rapidly due to the exploding demand for data- and compute-intensive workloads from AI, cryptocurrency mining, and blockchain applications.
Single-crystal diamond promises to exceed the performance of silicon carbide and greatly expand the applications universe with quantum computing, quantum encryption, and quantum sensing.
Original – Coherent
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Coherent Corp. announced that Dr. Vincent (“Chuck”) D. Mattera, Jr., has informed the Coherent Board of Directors of his intent to retire as CEO following the commencement of employment of his successor. Dr. Mattera’s intention to retire does not reflect a dispute or disagreement with the Company. In parallel with today’s announcement, the Company is reaffirming the guidance set forth in that certain Shareholder Letter dated as of February 5, 2024, and furnished on such date as an exhibit to a Current Report on Form 8-K filed on that day.
Coherent’s Board of Directors has retained a leading executive search firm to immediately commence a comprehensive search process, which will include evaluating internal and external candidates, to identify a new CEO to lead the Company into the future. A subcommittee of the Board has been formed to oversee the search process.
Dr. Mattera, 68, has served with Coherent for 20 years, the last eight of which have been as CEO. He is the Company’s third CEO since its founding in 1971 as II-VI Incorporated. He has also served as Chair of the Company’s Board of Directors since November 2021. During his tenure, Dr. Mattera led the transformation of II-VI, a premier supplier of engineered materials and optoelectronic components, into Coherent Corp., a global, diversified company enabling multiple irreversible megatrends in the industrial, communications, electronics, and instrumentation markets. Over his 20 years, the Company’s annual revenue grew from $150 million in fiscal 2004 to more than $5 billion in fiscal 2023.
“Leading this 53-year-old company through its multi-decade growth transformation has been an incredible privilege,” said Dr. Mattera. “I want to acknowledge and deeply thank our employees, investors, customers, partners, and especially our Leadership Team, as well as my fellow Board members, for our shared accomplishments and for helping make my years at Coherent so rewarding and impactful.
“Since the strategic combination of II-VI and Coherent two years ago, I am most proud of the tremendous progress we have made to integrate our two organizations, optimize synergies, and place the Company in an advantaged position for accelerated growth. With Coherent on a clear path to improved margins and continued profitable growth, its track record of product leadership, customer intimacy, operational excellence, and the unstoppable imagination of our world-class people, I believe that now is the right time to look toward the next chapter of the Company’s transformation,” Dr. Mattera said.
“I have never been more excited about Coherent’s prospects and look forward to transitioning to the next generation of leadership to execute new value creation opportunities and continue to unlock longer-term profitable growth. I am confident that Coherent’s extraordinary track record of financial and operational excellence, and its broad and deep foundation in materials, networking, and lasers, will pave the way for our sustained success. The future of Coherent is bright, and I am pleased to continue to play a role in delivering on our near-term strategic priorities and driving the seamless execution of our leadership succession plan, with the support and involvement of the Board.”
“Throughout Chuck’s tenure, he played a critical role in leading the development and execution of our strategic growth plans, helping transform the Company into a true market leader and redefine the future through breakthrough technologies. He has spent his entire career in and around the industry and has been instrumental in advancing the sector into one that is fundamental in today’s ever-changing environment. As CEO since 2016, Chuck has driven an over 700% increase in the Company’s market capitalization, to over $9 billion, and the Board and I can’t thank him enough for his outstanding contributions and stalwart leadership over the last 20 years. We look forward to continuing our work with Chuck in the near term and appreciate his continued leadership to ensure a smooth transition,” said Enrico DiGirolamo, Lead Independent Director.
“Since Coherent’s founding, the Company has been squarely focused on emerging trends and megatrends, investing in innovation to better anticipate what’s now, next, and beyond, and forming key strategic partnerships to best support our customers,” said Mr. DiGirolamo. “The markets we serve are changing rapidly, and, as we look ahead to our next chapter, we will continue to best position ourselves to capitalize on those areas where we see the greatest opportunities for growth and value creation. This includes finding the right new CEO, supported by seasoned business leaders and our exceptional Leadership Team, to steer our company forward, enhance our operating performance, and further strengthen our financial foundation.”
Original – Coherent
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Coherent Corp. announced that it has closed the $1 billion aggregate investment by DENSO CORPORATION and Mitsubishi Electric Corporation in Coherent’s silicon carbide semiconductor business.
Under the terms of the transaction announced on October 10, 2023, DENSO and Mitsubishi Electric each invested $500 million in exchange for a 12.5% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. Coherent has separated and contributed the Business to a new subsidiary that will operate the Business. Going forward, all operating and capital expenses of the Business will be funded by the Business. Coherent will control and operate the Business, which will continue to be led by Sohail Khan, Executive Vice President, Wide-Bandgap Electronics.
In connection with the transaction, the Business has entered into arm’s-length long-term supply arrangements with DENSO and Mitsubishi Electric that support their demand for 150 mm and 200 mm silicon carbide (SiC) substrates and epitaxial wafers.
“As I mentioned in October, we are excited to expand our strategic relationships with DENSO and Mitsubishi Electric to capitalize on the significant demand for silicon carbide,” said Dr. Vincent D. Mattera, Jr., Chair and CEO, Coherent.
“I believe that such a close relationship with two leaders in SiC power devices and modules is the best path forward to maximize shareholder value and position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position, while 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.”
“Through this strategic relationship with Coherent, we will secure a stable procurement of SiC wafers, which are critical for battery electric vehicles, and contribute to the realization of a carbon-neutral society by promoting the widespread adoption of BEVs in all regions around the world,” said Shinnosuke Hayashi, President & COO, Representative Member of the Board at DENSO.
Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device for Mitsubishi Electric, said, “We are pleased that this investment has been successfully completed. Going forward, we will further strengthen our collaboration with Coherent, leveraging their capabilities in development and manufacturing of SiC substrates, to achieve solid growth of our SiC power device business and contribute to a more sustainable world through decarbonization.”
When incorporated into electric vehicles and industrial infrastructure, SiC-based power electronics have demonstrated the potential to significantly reduce carbon dioxide emissions and accelerate the transition to a cleaner and more energy-efficient world.
Market estimates indicate that the SiC total addressable market will grow from $3 billion in 2022 to $21 billion in 2030, representing a 28% compound annual growth rate.
The transaction builds on Coherent’s more than two decades of demonstrated leadership in SiC materials. In recent years, the Company has aggressively invested to scale its manufacturing of 150 mm and 200 mm substrates to address this underserved market.
Over the past two years, Coherent has invested aggressively in capital and R&D for SiC. The closing of this $1 billion combined investment into the Business will accelerate the Company’s capital plans in the coming years. Specifically, the investment will fund the manufacturing expansion of the Business and, in combination with the concurrent supply agreements, enhance its position in the market.
The transaction enables Coherent to increase its available free cash flow to provide greater financial and operational flexibility to execute its capital allocation priorities, as it expects the aggregate $1 billion investment will be used to fund future capital expenditure requirements of the Business.
Original – Coherent
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Mitsubishi Electric Corporation has agreed with Coherent Corp. to invest USD 500 million in a new silicon carbide (SiC) business to be carved out from Coherent, aiming to expand its SiC power device business by strengthening vertical collaboration with Coherent, who has been a supplier of SiC substrates to Mitsubishi Electric.
The electric vehicle market is expanding worldwide and is one of several emerging applications driving the exponential growth of SiC power devices, which offer lower energy loss, higher operating temperatures and faster switching speeds than conventional silicon power devices. The high efficiency of SiC power devices is expected to contribute significantly to global decarbonization and green transformation.
Mitsubishi Electric has been a leader in SiC power modules for high-speed trains, high-voltage industrial applications, and home appliances for many years. The company made history by launching the world’s first SiC power modules for air conditioners in 2010, and became the first supplier of a full SiC power module for Shinkansen high-speed trains in 2015. Mitsubishi Electric has also accumulated extensive expertise by meeting market needs for advanced performance and high reliability by deploying superior processing, screening, etc. for the development and manufacture of SiC power modules.
Mitsubishi Electric has been procuring high-quality 150mm SiC substrates from Coherent for the production of SiC power modules for many years. In addition to developing high-quality 200mm SiC substrates with Coherent, Mitsubishi Electric plans to invest approximately 100 billion yen to construct a new 200mm SiC wafer plant in Kumamoto Prefecture, Japan beginning in 2026.
By further deepening its collaboration with Coherent through this investment, Mitsubishi Electric aims to stabilize its procurement of SiC substrates for SiC power modules, for which demand is forecasted to grow rapidly, and thereby expand its supply of reliable high-performance SiC power devices to meet rising global demand.
Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device of Mitsubishi Electric, said: “Demand for SiC power semiconductors is expected to grow exponentially as the global market for electric vehicles increases in line with the transition to a decarbonized world. To capitalize on this trend, we have decided to expand our SiC power semiconductor production capacity, including by constructing a 200mm wafer plant in the Shisui area of Kumamoto Prefecture. We are delighted to strengthen our partnership with Coherent by investing in this new SiC company, which will provide us with a stable supply of high-quality SiC substrates essential for our increased supply capacity.”
Original – Mitsubishi Electric
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DENSO CORPORATION announced a minority investment of US$500 million 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 & COO, Representative Member of the Board at DENSO.
Dr. Vincent D. Mattera, Jr., Chair and CEO at Coherent, said, “We are excited to expand our strategic relationships with DENSO to capitalize on the significant demand for silicon carbide. 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, a leader in SiC power devices and modules, is the best path forward to maximize shareholder value and position the Business for long-term growth.
The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position, while 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.
Original – DENSO
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Coherent Corp. and Mitsubishi Electric Corporation have signed a memorandum of understanding (MOU) to collaborate on a program to scale manufacturing of SiC power electronics on a 200 mm technology platform.
The market for electric vehicles is expanding worldwide and is just one of several emerging applications driving the exponential growth in SiC power devices, which have lower energy losses, higher operating temperatures, and higher switching speeds compared with power devices based on silicon. The high efficiency of SiC power devices is expected to be a significant contributor to global decarbonization and the green transformation.
To meet the rapidly growing demand, Mitsubishi Electric announced an investment of approximately 260 billion yen in the five-year period ending March 2026. A major portion of the investment, approximately 100 billion yen, will be used to construct a new plant for SiC power devices, based on a 200 mm technology platform, and enhance related production facilities. Under the MOU, Coherent will develop a supply of 200 mm n-type 4H SiC substrates for Mitsubishi Electric’s future SiC power devices manufactured at the new facility.
“We are excited to build on our relationship with Mitsubishi Electric, a pioneer in SiC power devices and a global market leader in SiC power modules for high-speed trains, including the famous Shinkansen in Japan,” said Sohail Khan, Executive Vice President, New Ventures & Wide-Bandgap Electronics Technologies at Coherent. “We have a long track record of supplying SiC substrates to Mitsubishi Electric and are looking forward to expanding our relationship with them to scale their new 200 mm SiC platform.”
“Coherent has been for many years a reliable supplier of high-quality 150 mm SiC wafer substrates to Mitsubishi Electric,” said Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device at Mitsubishi Electric. “We are delighted to enter into this close partnership with Coherent to scale our respective SiC manufacturing platforms to 200 mm.”
Coherent has decades of experience in the development of SiC materials. The company demonstrated the world’s first 200 mm conductive substrates in 2015. In 2019, Coherent began to supply 200 mm SiC substrates under REACTION, a Horizon 2020 four-year program funded by the European Commission.
Over the years, Mitsubishi Electric has led the SiC power module markets for high-speed trains, high-voltage industrial applications, and home appliances. Mitsubishi Electric made history by launching the world’s first SiC power modules for air conditioners in 2010, and became the first supplier of a full SiC power module for Shinkansen high-speed trains in 2015. Mitsubishi Electric has also built extensive expertise by serving customers’ needs for high performance and high reliability through its outstanding techniques of processing and screening, as well as many other facets of developing and manufacturing SiC power modules.
Power electronics based on SiC have demonstrated their potential to have a highly beneficial impact on the environment via significant reductions in carbon dioxide emissions. Through the rapidly growing demand for SiC power devices, Coherent and Mitsubishi Electric will accelerate their contribution to sustainable energy consumption and the decarbonization of society.
Original – Coherent
