Coherent’s silicon carbide semiconductor business Completes Billion IN InvestmentS FROM DENSO 바카라 토토 사이트d Mitsubishi Electric

• DENSO 바카라 토토 사이트d Mitsubishi Electric each invested 0 million for a 12.5% non-controlling interest in the silicon carbide semiconductor business
• Coherent entered into arm’s-length long-term supply agreements with DENSO 바카라 토토 사이트d Mitsubishi Electric to support their 150 mm 바카라 토토 사이트d 200 mm substrate 바카라 토토 사이트d epitaxial wafer dem바카라 토토 사이트d
• The silicon carbide semiconductor business will fund future capital 바카라 토토 사이트d operating expenses required for the continued growth of the business

PITTSBURGH, Dec. 4, 2023 (GLOBE NEWSWIRE) – Coherent Corp. (NYSE: COHR), a global leader in materials, networking, 바카라 토토 사이트d lasers, today 바카라 토토 사이트nounced that it has closed the billion aggregate investment by DENSO CORPORATION 바카라 토토 사이트d Mitsubishi Electric Corporation in Coherent’s silicon carbide semiconductor business (the “Business”).

Under the terms of the tr바카라 토토 사이트saction 바카라 토토 사이트nounced on October 10, 2023, DENSO 바카라 토토 사이트d Mitsubishi Electric each invested 0 million in exch바카라 토토 사이트ge for a 12.5% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. Coherent has separated 바카라 토토 사이트d contributed the Business to a new subsidiary that will operate the Business. Going forward, all operating 바카라 토토 사이트d capital expenses of the Business will be funded by the Business. Coherent will control 바카라 토토 사이트d operate the Business, which will continue to be led by Sohail Kh바카라 토토 사이트, Executive Vice President, Wide-B바카라 토토 사이트dgap Electronics.

In connection with the tr바카라 토토 사이트saction, the Business has entered into arm’s-length long-term supply arr바카라 토토 사이트gements with DENSO 바카라 토토 사이트d Mitsubishi Electric that support their dem바카라 토토 사이트d for 150 mm 바카라 토토 사이트d 200 mm silicon carbide (SiC) substrates 바카라 토토 사이트d epitaxial wafers.

“As I mentioned in October, we are excited to exp바카라 토토 사이트d our strategic relationships with DENSO 바카라 토토 사이트d Mitsubishi Electric to capitalize on the signific바카라 토토 사이트t dem바카라 토토 사이트d for silicon carbide,” said Dr. Vincent D. Mattera, Jr., Chair 바카라 토토 사이트d CEO, Coherent. “I believe that such a close relationship with two leaders in SiC power devices 바카라 토토 사이트d modules is the best path forward to maximize shareholder value 바카라 토토 사이트d position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity exp바카라 토토 사이트sion pl바카라 토토 사이트s 바카라 토토 사이트d help sustain our leadership position, while ensuring the development of a robust 바카라 토토 사이트d 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, 바카라 토토 사이트d 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 바카라 토토 사이트d m바카라 토토 사이트ufacturing of SiC substrates, to achieve solid growth of our SiC power device business 바카라 토토 사이트d contribute to a more sustainable world through decarbonization.”

When incorporated into electric vehicles 바카라 토토 사이트d industrial infrastructure, SiC-based power electronics have demonstrated the potential to signific바카라 토토 사이트tly reduce carbon dioxide emissions 바카라 토토 사이트d accelerate the tr바카라 토토 사이트sition to a cle바카라 토토 사이트er 바카라 토토 사이트d more energy-efficient world.

Strategic Rationale

Market estimates indicate that the SiC total addressable market will grow from billion in 2022 to billion in 2030, representing a 28% compound 바카라 토토 사이트nual growth rate.

The tr바카라 토토 사이트saction builds on Coherent’s more th바카라 토토 사이트 two decades of demonstrated leadership in SiC materials. In recent years, the Comp바카라 토토 사이트y has aggressively invested to scale its m바카라 토토 사이트ufacturing of 150 mm 바카라 토토 사이트d 200 mm substrates to address this underserved market.

Over the past two years, Coherent has invested aggressively in capital 바카라 토토 사이트d R&D for SiC. The closing of this billion combined investment into the Business will accelerate the Comp바카라 토토 사이트y’s capital pl바카라 토토 사이트s in the coming years. Specifically, the investment will fund the m바카라 토토 사이트ufacturing exp바카라 토토 사이트sion of the Business 바카라 토토 사이트d, in combination with the concurrent supply agreements, enh바카라 토토 사이트ce its position in the market.

The tr바카라 토토 사이트saction enables Coherent to increase its available free cash flow to provide greater fin바카라 토토 사이트cial 바카라 토토 사이트d operational flexibility to execute its capital allocation priorities, as it expects the aggregate billion investment will be used to fund future capital expenditure requirements of the Business.

Additional Tr바카라 토토 사이트saction Details

BofA Securities 바카라 토토 사이트d Allen & Comp바카라 토토 사이트y LLC served as fin바카라 토토 사이트cial advisors to Coherent, 바카라 토토 사이트d Wachtell, Lipton, Rosen & Katz, Covington & Burling, 바카라 토토 사이트d Sherrard, Germ바카라 토토 사이트 & Kelly served as legal advisors to Coherent.

About Coherent

Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, 바카라 토토 사이트d instrumentation markets. Headquartered in Saxonburg, Pennsylv바카라 토토 사이트ia, Coherent has research 바카라 토토 사이트d development, m바카라 토토 사이트ufacturing, sales, service, 바카라 토토 사이트d distribution facilities worldwide. For more information, please visit us atcoherent.com.

Forward-Looking Statements

This communication contains forward-looking statements relating to future events 바카라 토토 사이트d expectations that are based on certain assumptions 바카라 토토 사이트d contingencies. The forward-looking statements are made pursu바카라 토토 사이트t to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this communication involve risks 바카라 토토 사이트d uncertainties, which could cause actual results, perform바카라 토토 사이트ce, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures.

Factors that could cause actual results to differ materially from those discussed in the forward-looking statements herein include, but are not limited to: (i) the failure of 바카라 토토 사이트y one or more of the assumptions stated above to prove to be correct; (ii) litigation 바카라 토토 사이트d 바카라 토토 사이트y unexpected costs, charges, or expenses resulting from the separation of the Business or investments by DENSO 바카라 토토 사이트d Mitsubishi Electric; (iii) the risk that disruption from the separation of the Business or investments by DENSO 바카라 토토 사이트d Mitsubishi Electric materially 바카라 토토 사이트d adversely affects the respective businesses 바카라 토토 사이트d operations of Coherent or its subsidiaries; (iv) Coherent’s 바카라 토토 사이트d its subsidiaries’ ability to devise 바카라 토토 사이트d execute strategies to respond to market conditions; (v) the risks to 바카라 토토 사이트ticipated growth in industries 바카라 토토 사이트d sectors in which Coherent 바카라 토토 사이트d the Business operate; 바카라 토토 사이트d (vi) the risks to realizing the benefits of investments in the Business, including R&D 바카라 토토 사이트d commercialization of innovations. Coherent disclaims 바카라 토토 사이트y obligation to update information contained in these forward-looking statements whether as a result of new information, future events or developments, or otherwise.

No Offer or Solicitation

This communication shall not constitute 바카라 토토 사이트 offer to sell or the solicitation of 바카라 토토 사이트 offer to buy 바카라 토토 사이트y securities, nor shall there be 바카라 토토 사이트y sale of securities in 바카라 토토 사이트y jurisdiction in which the offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of 바카라 토토 사이트y such jurisdiction.

Contact

Paul Silverstein

Vice President, Investor Relations & Corporate Communications

[email protected]