TOKYO: Mitsubishi Electric Corporation (TOKYO: 6503) announced a USD 500 million (approx. 75 billion yen) investment in a new SiC power device business that will be spun off from Coherent Corp. (NYSE: COHR), its SiC substrate supplier.
The aim is to grow its SiC power device business by enhancing its vertical integration with Coherent.
SiC power devices are in high demand for electric vehicles and other applications that require lower energy loss, higher operating temperatures and faster switching speeds than conventional silicon power devices. SiC power devices can also help to reduce greenhouse gas emissions and accelerate the transition to a green economy.
Mitsubishi Electric has been a pioneer in SiC power modules for various sectors, such as high-speed trains, high-voltage industrial applications, and home appliances.
The company was the first to launch SiC power modules for air conditioners in 2010, and the first to supply a full SiC power module for Shinkansen high-speed trains in 2015. Mitsubishi Electric has also developed and manufactured SiC power modules with superior performance and reliability by applying advanced processing, screening, etc.
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.”