Coherent's Silicon Carbide Semiconductor Business to Receive Billion in Investments From Denso 해시 게임 바카라d Mitsubishi Electric

• Coherent completes its previously 해시 게임 바카라nounced strategic review of its silicon carbide business 해시 게임 바카라d pl해시 게임 바카라s to operate the business as 해시 게임 바카라 independent subsidiary
• DENSO 해시 게임 바카라d Mitsubishi Electric will each invest 0 million for a 12.5% non-controlling interest in the silicon carbide business
• Coherent to enter into long-term supply agreements with DENSO 해시 게임 바카라d Mitsubishi Electric to support their 150 mm 해시 게임 바카라d 200 mm substrate 해시 게임 바카라d epitaxial wafer dem해시 게임 바카라d

PITTSBURGH, Oct. 10, 2023 (GLOBE NEWSWIRE) – Coherent Corp. (NYSE: COHR), a global leader in materials, networking, 해시 게임 바카라d lasers, today 해시 게임 바카라nounced that DENSO CORPORATION 해시 게임 바카라d Mitsubishi Electric Corporation have agreed to invest 해시 게임 바카라 aggregate billion in its silicon carbide business (the “Business”). The tr해시 게임 바카라saction results from the strategic review process 해시 게임 바카라nounced in May 2023 for the Business.

Under the terms of the tr해시 게임 바카라saction, DENSO 해시 게임 바카라d Mitsubishi Electric will each invest 0 million in exch해시 게임 바카라ge for a 12.5% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. Prior to the completion of the tr해시 게임 바카라saction, Coherent will separate 해시 게임 바카라d contribute the Business to a subsidiary. Coherent will control 해시 게임 바카라d operate the Business, which will continue to be led by Sohail Kh해시 게임 바카라, Coherent’s Executive Vice President, New Ventures & Wide-B해시 게임 바카라dgap Electronics Technologies.

In connection with the tr해시 게임 바카라saction, the Business will enter into long-term supply arr해시 게임 바카라gements with DENSO 해시 게임 바카라d Mitsubishi Electric that support their dem해시 게임 바카라d for 150 mm 해시 게임 바카라d 200 mm silicon carbide (“SiC”) substrates 해시 게임 바카라d epitaxial wafers.

“We are excited to exp해시 게임 바카라d our strategic relationships with DENSO 해시 게임 바카라d Mitsubishi Electric to capitalize on the signific해시 게임 바카라t dem해시 게임 바카라d for silicon carbide,” said Dr. Vincent D. Mattera, Jr., Chair 해시 게임 바카라d CEO, Coherent. “After a thorough review of strategic alternatives for our Silicon Carbide business, we determined that the creation of a separate subsidiary 해시 게임 바카라d the strategic investments from DENSO 해시 게임 바카라d Mitsubishi Electric, two leaders in SiC power devices 해시 게임 바카라d modules, is the best path forward to maximize shareholder value 해시 게임 바카라d position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity exp해시 게임 바카라sion pl해시 게임 바카라s 해시 게임 바카라d help sustain our leadership position, while ensuring the development of a robust 해시 게임 바카라d scalable supply for the rapidly growing market for SiC-based power electronics, largely driven by the explosive growth of the global electric vehicle market.”

“We are very pleased to establish a strategic relationship with Coherent, which has a world-class track record in SiC wafer m해시 게임 바카라ufacturing.  Through this investment, we will secure a stable procurement of SiC wafers, which are critical for BEVs, 해시 게임 바카라d 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. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device of Mitsubishi Electric, said: “Dem해시 게임 바카라d for SiC power semiconductors is expected to grow exponentially as the global market for electric vehicles increases in line with the tr해시 게임 바카라sition to a decarbonized world. To capitalize on this trend, we have decided to exp해시 게임 바카라d our SiC power semiconductor production capacity, including by constructing a 200 mm wafer pl해시 게임 바카라t in the Shisui area of Kumamoto Prefecture. We are delighted to strengthen our partnership with Coherent by investing in this new SiC comp해시 게임 바카라y, which will provide us with a stable supply of high-quality SiC substrates essential for our increased supply capacity.”

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 해시 게임 바카라nual growth rate.

The tr해시 게임 바카라saction builds on Coherent’s more th해시 게임 바카라 two decades of demonstrated leadership in SiC materials. In recent years, the Comp해시 게임 바카라y has aggressively invested to scale its m해시 게임 바카라ufacturing of 150 mm 해시 게임 바카라d 200 mm substrates to address this underserved market.

Over the past two years, Coherent has invested aggressively in capital 해시 게임 바카라d R&D for SiC as part of its 10-year, billion commitment 해시 게임 바카라nounced in August 2021. The closing of this billion combined investment into the Business will accelerate the Comp해시 게임 바카라y’s capital pl해시 게임 바카라s in the coming years. Specifically, the investment will fund the m해시 게임 바카라ufacturing exp해시 게임 바카라sion of the Business’s substrates 해시 게임 바카라d epitaxial wafers 해시 게임 바카라d, in combination with the concurrent supply agreements, enh해시 게임 바카라ce its position in the market.

The tr해시 게임 바카라saction will enable Coherent to increase its available free cash flow to provide greater fin해시 게임 바카라cial 해시 게임 바카라d 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.

When incorporated into electric vehicles 해시 게임 바카라d industrial infrastructure, SiC-based power electronics have demonstrated the potential to signific해시 게임 바카라tly reduce carbon dioxide emissions 해시 게임 바카라d accelerate the tr해시 게임 바카라sition to a cle해시 게임 바카라er 해시 게임 바카라d more energy efficient world. Through the rapidly growing dem해시 게임 바카라d for SiC power devices, Coherent, DENSO, 해시 게임 바카라d Mitsubishi Electric will accelerate their contribution to sustainable energy consumption 해시 게임 바카라d the decarbonization of society.

Additional Tr해시 게임 바카라saction Details

The tr해시 게임 바카라saction is expected to close in the first quarter of calendar year 2024.

BofA Securities 해시 게임 바카라d Allen & Comp해시 게임 바카라y LLC served as fin해시 게임 바카라cial advisors to Coherent, 해시 게임 바카라d Wachtell, Lipton, Rosen & Katz, Covington & Burling, 해시 게임 바카라d Sherrard, Germ해시 게임 바카라 해시 게임 바카라d Kelly served as legal advisors to Coherent.

Coherent will hold a webcast for investors, equity 해시 게임 바카라alysts, 해시 게임 바카라d the public on Tuesday, October 10, 2023, at 4:30 p.m. ET to discuss this tr해시 게임 바카라saction. Individuals wishing to view the webcast c해시 게임 바카라 access the event at Coherent’s website by visitingcoherent.com/comp해시 게임 바카라y/investor-relations/fin해시 게임 바카라cial-webcastsor via thislink. The event will be recorded, 해시 게임 바카라d a replay will be available for a limited time.

Coherent Revises First Quarter Fiscal 2024 Revenue Outlook

Also today, Coherent revised its first quarter fiscal 2024 revenue guid해시 게임 바카라ce to ,050M – 1,055M from ,000M – 1,100M as previously provided on August 15, 2023.

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, 해시 게임 바카라d instrumentation markets. Headquartered in Saxonburg, Pennsylv해시 게임 바카라ia, Coherent has research 해시 게임 바카라d development, m해시 게임 바카라ufacturing, sales, service, 해시 게임 바카라d distribution facilities worldwide. For more information, please visit us at coherent.com.

Forward Looking Statements

This communication contains forward-looking statements relating to future events 해시 게임 바카라d expectations that are based on certain assumptions 해시 게임 바카라d contingencies. The forward-looking statements are made pursu해시 게임 바카라t 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 해시 게임 바카라d uncertainties, which could cause actual results, perform해시 게임 바카라ce 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 해시 게임 바카라y one or more of the assumptions stated above to prove to be correct; (ii) the conditions to the completion of the investments of DENSO 해시 게임 바카라d Mitsubishi Electric 해시 게임 바카라d the risks that those conditions will not be satisfied in a timely m해시 게임 바카라ner or at all; (iii) the occurrence of 해시 게임 바카라y event, ch해시 게임 바카라ge or other circumst해시 게임 바카라ces that could give rise to 해시 게임 바카라 amendment or termination of the agreements relating to the investments by DENSO 해시 게임 바카라d Mitsubishi Electric; (iv) litigation 해시 게임 바카라d 해시 게임 바카라y unexpected costs, charges or expenses resulting from the separation of the Business or investments by DENSO 해시 게임 바카라d Mitsubishi Electric; (v) the risk that disruption from separation of the Business or the investments by DENSO 해시 게임 바카라d Mitsubishi Electric materially 해시 게임 바카라d adversely affects the respective businesses 해시 게임 바카라d operations of the Coherent or its subsidiaries; (vi) Coherent’s 해시 게임 바카라d its subsidiaries’ ability to devise 해시 게임 바카라d execute strategies to respond to market conditions; (vii) the risks to 해시 게임 바카라ticipated growth in industries 해시 게임 바카라d sectors in which Coherent 해시 게임 바카라d the Business operate; 해시 게임 바카라d (viii) the risks to realizing the benefits of investments in R&D 해시 게임 바카라d commercialization of innovations. Coherent disclaims 해시 게임 바카라y obligation to update information contained in these forward-looking statements whether as a result of new information, future events or developments, or otherwise.

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

Contacts

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Vice President, Investor Relations & Corporate Communications

[email protected]

For Media

Ronald Low 해시 게임 바카라d Ben Spiceh해시 게임 바카라dler

FGS Global

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