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    HomeFinanceDENSO And MITSUBISHI Electric Investing $1Bn in Coherent Silicon Carbide Business

    DENSO And MITSUBISHI Electric Investing $1Bn in Coherent Silicon Carbide Business

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    Automotive supplier DENSO Corp of Kariya, Aichi prefecture, Japan and Tokyo-based Mitsubishi Electric Corp have agreed to invest a combined $1bn in Coherent Corp’s silicon carbide division, according to the materials, networking, and laser technology company. The silicon carbide (SiC)-based inverter was created by automotive supplier DENSO Corp of Kariya, Aichi Prefecture, Japan. The inverter will be utilized in the new RZ, Lexus’ first specifically designed battery electric vehicle (BEV) model, which will go on sale on March 30. It is a component of the eAxle, an electric drive module created by BluE Nexus Corp. According to DENSO, the distinctive trench-type metal-oxide-semiconductor (MOS) structure of SiC power semiconductors increases chip output by minimizing power loss from heat generation. High voltage and low on-resistance functioning are made possible by the construction.

    Mitsubishi Electric buys stake in Novel Crystal Technology:

    As a prospective option for use in better energy-saving power semiconductors in order to help global decarbonization. Mitsubishi Electric will produce gallium oxide power semiconductors using Novel Crystal technique’s manufacturing technique because it was one of the first businesses to create, produce, and sell gallium oxide wafers. Mitsubishi Electric claims that by creating semiconductors made of silicon and silicon carbide (SiC), it has helped power electrical items save energy. The use of gallium nitride and silicon carbide has recently resulted in improvements.

    DENSO utilizes 150mm SiC epiwafers from SDK:

    The fuel-cell electric vehicle (FCEV) supplier DENSO Corp of Kariya, Aichi prefecture, Japan, has chosen to use 6-inch (150mm)-diameter silicon carbide (SiC) epitaxial wafers from Tokyo-based Showa Denko K.K. (SDK), which manufactures petrochemicals, gas products, specialty chemicals, electronics, inorganics, aluminium, etc. SiC epiwafers from SDK, which were introduced in 2009, have been used by makers of electronic equipment for a variety of products, including railcars, servers, and quick-charging stations for electric vehicles. According to SDK, DENSO chose its SiC epiwafers for its next-generation power modules because of their demonstrated track record with device manufacturers, high-grade epi specs, low density of surface flaws, and low frequency of basal planes.  On-board battery chargers (OBCs) and quick-charging stations for EVs and railcars already employ SiC power semiconductors. The SiC epiwafer market is therefore anticipated to reach approximately 100 billion yen by 2025, when full-scale adoption in power control units (PCUs) for electric vehicles is anticipated to increase demand.

    Details and Implications of Investment:

    According to the contract, Denso and Mitsubishi must each contribute $500 million in order to receive a 12.5% share in Coherent’s Silicon Carbide business. This places a whopping $4 billion value on the unit. Coherent will continue to own a 75% majority ownership in the spinoff, which will function as a separate business. “This investment is a significant step towards reducing our debt and generating free cash flow for other strategic investments,” a Coherent official said. Along with assisting Coherent with debt reduction, the influx of cash will give it the financial freedom to investigate and make investments in other intriguing business opportunities.

    Drawbacks:

     It is challenging to manufacture SiC, a high-performance material for power semiconductors. Compared to traditional silicon, it can resist greater voltages and stronger currents, which helps prevent power loss. When the compound is added to the power electronics, electric vehicles will be able to go farther. Demand for things related to data centers is also rising. The company already collaborates with Coherent on the collaborative development of SiC materials, and it hopes that the new investment would allow for even closer cooperation. As the demand for automotive power semiconductors rises, Denso looks for a consistent supply of SiC. SiC, which can increase EV range when utilized in semiconductor devices for inverters, has been adopted by Tesla and Toyota Motor. the global market for SiC power semiconductor devices would grow by more than four times from its projected value for 2022 to $6.45 billion in 2030.

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