Coherent in talks with Japanese firms for silicon carbide investment-source

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. Denso Corp, Hitachi Ltd, Mitsubishi Electric Corp and Sumitomo Electric Industries Inc have held discussions about taking a minority stake in Coherent's silicon carbide business, the source said.