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DENSO Corporation and Fuji Electric Co., Ltd. announced that a semiconductor supply plan submitted jointly by the companies has been approved by the Ministry of Economy, Trade and Industry. Under this plan, the companies will take part in joint investment and production of silicon carbide (SiC) power semiconductors to develop and strengthen frameworks for the supply of said semiconductors.
Power semiconductors are vital to the efficient supply of electric power. Demand for power semiconductors has been rising rapidly given that they are used in electrified vehicles, which are being adopted at an accelerated pace amid the push for the decarbonization of society. In comparison to prior silicon semiconductors, SiC power semiconductors are able to deliver superior performance under high temperature, high-frequency, and high-voltage conditions.
These devices are therefore anticipated to make large contributions to reductions in power loses as well as to more compact and lighter-weight designs for battery electric vehicle systems and other power electronics. Accordingly, growth in demand is projected for SiC power semiconductors.
In response to electrification trends, DENSO has advanced SiC technology development projects targeting increased quality and efficiency in relation to everything from wafers and element devices to modules and inverters. Meanwhile, Fuji Electric has constructed extensive frameworks encompassing all tasks spanning from the development of SiC power semiconductor elements that enable increased efficiency and more compact designs for power electronics equipment to mass production of the related modules.
Based on the approved plan, these companies will combine their respective automotive product development and production technology capabilities in a joint effort to expand their capacity for the efficient and stable supply of SiC power semiconductors throughout Japan.
Through this partnership, the companies will contribute to the development of semiconductor supply frameworks within Japan and to the improvement of the international competitiveness of Japan’s domestic semiconductor and automotive industries. In addition, this partnership is anticipated to help advance the decarbonization of society.
Original – Fuji Electric
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DENSO CORPORATION and ROHM Co., Ltd. announced that the two companies have agreed to start consideration of strategic partnership in the semiconductor field.
As the development and spread of electric vehicles accelerate toward the realization of carbon neutrality, the demand for electronic components and semiconductors required for electrification of vehicles is rapidly increasing. In addition, semiconductors are becoming increasingly important as products that support the intelligence of vehicles, such as automated driving and connectivity which are expected to contribute to eliminating fatalities in traffic accidents, and are essential to the realization of a sustainable society.
DENSO and ROHM have been working together through trade and development of semiconductors for automotive applications. Going forward, both companies will consider this partnership to achieve a stable supply of highly reliable products, as well as for various initiatives to develop high-quality and high-efficiency semiconductors that contribute to a sustainable society.
To further solidify the partnership, DENSO will acquire a portion of ROHM’s shares.
DENSO CORPORATION President & CEO, Shinnosuke Hayashi
DENSO positions semiconductors as key devices for realizing next-generation vehicle systems and we have deepened our cooperative relationships with semiconductor manufacturers who have abundant experience and knowledge. ROHM has a lineup of semiconductors in a wide range of areas important for automotive electronics, including analog semiconductors, power devices, and discrete semiconductors, and has extensive mass production experience. We believe that by integrating the automotive technologies and expertise we have cultivated over the years, we will be able to ensure a stable supply and accelerate technological development.
ROHM Co., Ltd. President (Representative Director), Isao Matsumoto
Global Tier 1 manufacturer DENSO and ROHM have been deepening collaboration for many years, and in recent years we have been working on joint development of analog semiconductors. We believe that the partnership with DENSO and the acquisition of shares by DENSO will further strengthen our cooperative relationship. To realize carbon neutrality, it is important to collaborate on technology at the device level with an eye toward end products and systems. We believe that we can contribute to the realization of a sustainable society by deepening our integration with DENSO, who has advanced system construction capabilities in the automotive and industrial equipment fields.
Original – DENSO
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DENSO announced global financial results for its first quarter, ending June 30, 2024, for its 2025 fiscal year, ending March 31, 2025:
- Consolidated revenue totaled 1,753.8 billion yen (US$10.9 billion), a 2.4 percent increase from the previous year.
- Consolidated operating profit totaled 120.6 billion yen (US$0.7billion), a 27.7 percent increase from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 94.5billion yen (US$0.6billion), a 10.5 percent increase from the previous year.
“Revenue in the first quarter increased compared to the previous year, due in part to slowing depreciation of the yen, though suspensions of operations by Japanese customers and lower vehicle production volumes due to poor vehicle sales in Asia did affect overall performance. Operating profit in the first quarter increased compared to the previous year due to foreign exchange gains and improvement efforts though lower production volumes.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION.
“In this fiscal year, we forecast 7,330.0 billion yen (US$45.5 billion) in revenue and 692.0 billion yen (US$4.3 billion) in operating profit. In the first quarter, due to the idling of Japanese customers and lower vehicle production volumes in Asia, both sales revenue and operating profit decreased compared to the announced forecast at the beginning of the year. And from the second quarter onward, the impact of suspended operations by customers in Japan is expected to be reduced, but poor vehicle sales, especially in Asia, are expected to continue. On the other hand, the yen is also expected to continue to depreciate. As we navigate these uncertainties, we commit to execute our plan from the second quarter onward announced at the beginning of the year. Based on the above, our forecast of revenue and operating profit reflects only the downside of the first quarter and revise full-year financial forecast downward.”
- In Japan, revenue increased to 984.6illion yen (US$6.1 billion), up 0.4% from the previous year, and operating profit was 45.1 billion yen (US$280.0 million), up 81.6% from the previous year.
- In North America, revenue increased to 500.1 billion yen (US$3.1 billion), up 17.7% from the previous year, and operating profit was 23.3 billion yen (US$144.6 million) up 270.2% from the previous year.
- In Europe, revenue increased to 199.8 billion yen (US$1.2 billion), up 0.7% from the previous year, and operating profit was 5.0 billion yen (US$31.0 million), down 33.0% from the previous year.
- In Asia, revenue increased to 461.4 billion yen (US$2.9 billion), down 0.6% from the previous year and operating profit was 35.8 billion yen (US$222.0 million), down 11.7% from the previous year.
- In other areas, revenue increased to 29.0 billion yen (US$0.2 billion), up 1.8% from the previous year, and operating profit was 5.9 billion yen (US$36.9 million), up 19.5% from the previous year.
Original – DENSO
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DENSO announced global financial results for its third quarter, ending December 31, 2023, for its 2024 fiscal year, ending March 31, 2024:
- Consolidated revenue totaled 5,354.9 billion yen (US$37.8 billion), a 15.5 percent increase from the previous year.
- Consolidated operating profit totaled 238.6 billion yen (US$1.7billion), a 11.0 percent decrease from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 175.6 billion yen(US$1.2billion), a 11.2 percent decrease from the previous year
“Revenue in the third quarter increased compared to the previous year due to the strong vehicle sales mainly in Japan and North America, foreign exchange gains and expansion of products for electrification, safety and peace of mind areas. Operating profit in the third quarter decreased compared to the previous year due to the continuing rise in the cost of materials, especially electronic components, and the adding provision for quality, though production volume, foreign exchange gains and improvement.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION.
“In this fiscal year, we forecast 7,120.0 billion yen (US$50.2 billion) in revenue and 495.0 billion yen (US$3.5 billion) in operating profit. Forecast of revenue will be based on actuals of foreign exchange gains in the third quarter and forecast in the fourth quarter. Forecast of operating profit will be based on the adding provision for quality.”
In Japan, revenue increased to 3,148.3 billion yen (US$22.2 billion), up 17.0% from the previous year, and operating profit was 22.4 billion yen (US$157.6 million), down 84.8% from the previous year.In North America, revenue increased to 1,286.0 billion yen (US$9.1 billion), up 18.8% from the previous year, and operating profit was 27.5 billion yen (US$194.0 million) (Operating loss of 15.0 billion yen in the same quarter of the previous year).
In Europe, revenue increased to 570.4 billion yen (US$4.0 billion), up 16.2% from the previous year, and operating profit was 22.4 billion yen (US$157.9 million), up 145.6% from the previous year.
In Asia, revenue increased to 1,521.2 billion yen (US$10.7 billion), up 3.5% from the previous year and operating profit was 149.4 billion yen (US$1,053.6 million), up 31.6% from the previous year.
In other areas, revenue increased to 81.9 billion yen (US$0.6 billion), up 6.6% from the previous year, and operating profit was 15.1 billion yen (US$106.3 million), down 2.3% from the previous year.Forecast for Fiscal Year Ending March 31, 2024
Full-Year Forecast Changes from Previous Forecast Revenue 7,120.0 billion yen
[US$50.2 billion]+120.0 billion yen
(+1.7 percent)Operating profit 495.0 billion yen
[US$3.5 billion]-135.0 billion yen
(-21.4 percent)Profit before profit taxes 548.0 billion yen
[US$3.9 billion]-136.0 billion yen
(-19.9 percent)Profit attributable to owners of the parent company 380.0 billion yen
[US$2.7 billion]-90.0 billion yen
(-19.1 percent)ROE 8.1% -1.6% Original – DENSO
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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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DENSO Corporation announced changes to its organizational structure, executives’ responsibilities and personnel, effective January 1, 2024.
DENSO has stated at “DENSO DIALOG DAY 2023” that it will evolve from being “a Tier 1 supplier that supports the auto industry” to “a Tier 1 supplier that supports a mobility-centered society”, aiming to maximize the value of the entire mobility society, in addition to vehicles.
To achieve this, DENSO has announced its commitment to three challenges: “evolution of mobility,” “strengthening of foundational technology,” and “creating new value.” To materialize these goals, the following organizational and executive changes will be implemented.
In terms of the executive structure, two executive vice presidents will assume responsibility for the company’s major management resources in the following two areas, accelerating the formulation and execution of growth strategies. Additionally, to strengthen and expand technological development areas that will spur new growth, a Chief Innovation Officer (CIO) position will be established.
Original – DENSO
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DENSO CORPORATION hosted its annual Dialog Day on November 15th. Aiming to enhance its concepts “Green” and “Peace of Mind” to evolve from “a Tier 1 supplier that supports the auto industry” to “a Tier 1 supplier that supports a mobility-centered society,” DENSO has announced a new management structure strategy, its corporate value improvement strategy, its fundamental technology strategy and creation of new values.
To evolve from “a Tier 1 supplier that supports the auto industry“ to “a Tier 1 supplier that supports a mobility-centered society,” DENSO is implementing three intiatives: “evolution of mobility,” “strengthening fundamental technologies,” and “creating new value.”
1.Evolution of mobility
・ Electrification
DENSO aims to grow its electrification business to 1.2 trillion yen in sales by 2025 and 1.7 trillion yen in 2030 by strengthening its “product competitiveness,” “product lineups” and “manufacturing.”In terms of “product competitiveness,” the company will refine the functions and performance of its core products, improve competitiveness and provide a wide range of products, from core components to energy management systems, to meet the diverse needs of customers’ “product lineups.” In “manufacturing,” DENSO will shorten the development period in half so it can quickly deliver products to customers around the world. In support of this, the company will establish a mass-production system in 5 regions around the world.
・ADAS
DENSO aims to achieve sales of 520 billion yen by 2025 and 1 trillion yen in 2030 by strengthening its “product competitiveness,” “product lineups” and “technology development.”
For “product competitiveness,” in 2022, the company began mass producing Global Safety Package 3, a new-generation advanced safety system. It achieves optimal driver assistance by connecting ADAS products to HMI (Human Machine Interface) and infrastructure. In terms of “product lineups” DENSO will contribute to safety by increasing the percentage of vehicles equipped with our products and systems that meet the needs of customers and local communities. In “technology development,” we will strengthen the development of emerging technologies that support the evolution of systems and components.2.Strengthening fundamental technologies
・Semiconductor
DENSO will actively invest about 500 billion yen by 2030 and will triple the scale of the business to 700 billion yen from the current level by 2035.
In terms of SiC power semiconductors, which contribute to the improvement of electricity consumption of BEV, the company will accelerate the introduction of SiC power semiconductors to the market by promoting technological initiatives such as the practical application of high-quality wafers and the reduction of costs, and by achieving stable supply through cooperation with our partners. Regarding analog semiconductor ASICs, we will differentiate ourselves by developing in-house products that suppot customers’ needs. In terms of the SoC, we will build an optimal SoC for in-vehicle use by advancing industry cooperation, including the acquisition of chiplet technology.・Software
Relating to our workforce, in 2030, DENSO will increase the number of software engineers to 18,000, 1.5 times more than the current level. In 2035, we increased the size of our business to 800 billion yen, four times more than the current level.
As the scale of in-vehicle software becomes increasingly large and the cross-domain development such as powertrains, body, and communications is required, DENSO will realize a large-scale integrated Electronic Control Unit (ECU) with high quality and high accuracy in software by utilizing the diverse software IP and mounting capabilities DENSO has accumulated over the years. In the age of Software-Defined Vehicles (SDV), when software and hardware are separated and begin to be distributed separately, we will ollaborate with customers to develop business and lead standardization across our customers.3.Creating new value
DENSO aims to grow the new value business to 300 billion yen in sales by 2030 and to 20% of total sales in 2035.
While we are developing technologies and considering commercialization in various fields, we will enter the hydrogen business in the energy field. Utilizing technologies we have developed in the automotive industry, such as ceramics, ejectors, and thermal management, we will introduce SOEC and SOFC to the market. In the food and agriculture sector, we will introduce manufacturing principles to farming to contribute to the stable supply of food,. We will also accelerate our global business development by combining the strengths of the wholly owned Certhon Group with those of DENSO.
Through the three intiatives and under the new management structure, we will advance our business in the field of “Green” and “Peace of Mind” and aim to achieive 7.5 trillion yen in sales by 2030.Management that values our people
DENSO will recruit new employees and shift current ones in mature fields to electrification and software areas to grow that team to about 4,000 employees from 2022 to 2025. The company values the intrinsic talents and passions of every employee, which is the driving force behind all DENSO activities. DENSO will promote management that values its people in order to connect its company philosophy with employees’ motivations.Original – DENSO
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DENSO announced global financial results for its second quarter, ending September 30, 2023, for its 2024 fiscal year, ending March 31, 2024:
- Consolidated revenue totaled 3,513.5 billion yen (US$23.5 billion), a 16.3 percent increase from the previous year.
- Consolidated operating profit totaled 211.8 billion yen (US$1.4 billion), a 36.3 percent increase from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 168.9 billion yen
(US$1.1billion), a 59.7 percent increase from the previous year.
“Revenue in the second quarter increased compared to the previous year due to the strong vehicle sales mainly in Japan and North America, foreign exchange gains and expansion of products for electrification, safety and peace of mind areas though decrease of Japanese, European, and American vehicle sales in China.
Operating profit in the second quarter increased compared to the previous year due to production volume, foreign exchange gains and improvement, though the continuing rise in the cost of materials, especially electronic components, and the accelerating investment for future as R&D.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION.
“In this fiscal year, we forecast 7,000.0 billion yen (US$46.8 billion) in revenue and 630.0 billion yen (US$4.2 billion) in operating profit. Revenue and operating profit will be based on strong sales actuals in the first half and forecast of foreign exchange gains and sales expansions in the third quarter. The annual dividends for the end of the fiscal year will be 52 yen, a 2 yen increase from the previous announcement. This means 208 yen as pre-stock split conversion. We will continue to improve DOE levels over the long term and in a stable manner.”
In Japan, revenue increased to 2061.2 billion yen (US$13.8 billion), up 18.5% from the previous year, and operating profit was 85.2 billion yen (US$569.5 million), down 6.4% from the previous year.
In North America, revenue increased to 856.6 billion yen (US$5.7 billion), up 19.8% from the previous year, and operating profit was 14.2 billion yen (US$94.8 million) (Operating loss of 13.0 billion yen in the same quarter of the previous year).
In Europe, revenue increased to 372.8 billion yen (US$2.5 billion), up 15.8% from the previous year, and operating profit was 13.9 billion yen (US$92.8 million), up 285.0% from the previous year.
In Asia, revenue increased to 974.0 billion yen (US$6.5 billion), up 1.4% from the previous year and operating profit was 88.2 billion yen (US$589.6 million), up 30.9% from the previous year.
In other areas, revenue increased to 60.3 billion yen (US$0.4 billion), up 12.4% from the previous year, and operating profit was 11.5 billion yen (US$76.9 million), up 0.8% from the previous year.
Forecast for Fiscal Year Ending March 31, 2024
Full-Year Forecast Changes from Previous Forecast Revenue 7,000.0 billion yen
[US$46.8 billion]+300.0 billion yen
(+4.5 percent)Operating profit 630.0 billion yen
[US$4.2 billion]+30.0 billion yen
(+5.0 percent)Profit before profit taxes 684.0 billion yen
[US$4.6 billion]+30.0 billion yen
(+4.6 percent)Profit attributable to owners
of the parent company470.0 billion yen
[US$3.1 billion]+26.0 billion yen
(+5.9 percent)ROE 9.7% +0.4% Original – DENSO
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DENSO CORPORATION hosted a press conference at JAPAN MOBILITY SHOW 2023 held at Tokyo Big Sight on October 26. Shinnosuke Hayashi, President and COO introduced the strategy to maximize company’s contributions to “Green” and “Peace of Mind.”
Shinnnouke Hayashi, President and COO of DENSO CORPORATION said that it is a great pleasure that the Tokyo Motor Show, which has attracted much public attention for decades, has been renamed the JAPAN MOBILITY SHOW. This change reflects the fact that we are entering an era of creating new value by addressing various issues from the viewpoint of a mobility-centered society instead of just vehicles and by connecting people and technologies across industries. This means that DENSO must meet major challenges.
To evolve from “a Tier 1 supplier that supports the auto industry “to “a Tier 1 supplier that supports a mobility-centered society” to create value for more diverse customers, the company addresses three intiatives. To promote these three initiatives, DENSO will recruit new employees in the electrification and software field and actively shift the employees from the mature field to the electrification and software fields and strengthen about 4,000 employees during the four years from 2022 to 2025.- The contribution to the “evolution of mobility”
In the “Green” field, “the environment”, in addition to the product lineup in the “horizontal” direction to enable installation in HEVs, PHEVs, BEVs, and FCEVs, the lineup will be expanded in the “vertical” direction ranging from large systems, which link electrification products with energy management, to components, including power modules, thereby meeting the needs of various customers as BEVs proliferate and helping to achieve carbon neutrality in respective countries. In the “Peace of Mind” field, “worry-free society”, in addition to around-vehicle monitoring systems, DENSO will focus on driver status monitoring systems and cloud-based large systems, which connect with the social infrastructure. Through these efforts, the company will help eliminate fatalities.
Furthermore, DENSO will extend its commitment to the evolution of mobility to the sky to help realize more freedom of traveling and expand the possibilities of mobility.
- The challenge to “to create new value”
DENSO has been studying the possibility of developing and commercializing many technologies in non-mobility fields, including energy, food and agriculture, and the circular economy. Specifically, the company plans to market energy system products such as Solid Oxide Electrolysis Cell and Solid Oxide Fuel Cell in 2024 and beyond.
- Strengthening semiconductors and software
In terms of semiconductors, DENSO will actively invest about 500 billion yen by 2030. DENSO will triple the scale of the business from the current level by 2035. To expand production, the company must ensure stable procurement of materials. Thus, DENSO will forge strategic partnerships with various companies.
In the softaware field, the implementation phase to embody concepts, the company will accelerate the planning of electronic platform and over-the-air technology development based on user needs while strengthening partnerships with various customers and promote integrated development across companies. DENSO will increase the number of software engineers and improve their skills and integrate two group companies which have excellent proprietary technologies, into DENSO. One is NSITEXE, which specializes in the semiconductor intellectual property, and the other is AUBASS, which specializes in developing basic in-vehicle software. DENSO will double the speed of development by applying specialized AI, which incorporates company’s knowledge and experience gained through in-vehicle software.
Original – DENSO
- The contribution to the “evolution of mobility”
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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
