Coherent in talks with Japanese firms for silicon carbide investment

NEW YORK: Coherent Corp, a major U.S. supplier of materials used to make chips for the automotive industry, has attracted interest from four Japanese conglomerates for an investment in its silicon carbide business at a valuation of as much as $5 billion, according to a person familiar with the matter.

The investment would alleviate the financial burden for Coherent, which has said it will invest $1 billion over the next 10 years to expand its production of silicon carbide wafers, which help boost the range of electric vehicles more than chips made with traditional silicon.