Coherent Corp shares are up Monday following reports that the semiconductor company has drawn investment interest from Japanese firms.
A quartet of Japanese conglomerates has discussed taking a minority stake in Coherent’s silicon carbide business at a valuation of up to $5 billion, according to reports citing sources familiar with the matter.
Coherent has said it plans to invest $1 billion over the next decade to expand its production of silicon carbide wafers, which increase the range of electric vehicles more than chips made with traditional silicon.
The Pittsburgh-based company also produces lasers and switches for circuits.
Denso Corp, Hitachi Ltd, Mitsubishi Electric Corp and Sumitomo Electric Industries Inc are the Japanese conglomerates in question, per reports. Coherent could accept one or more of these firms as investors.
Shares of Coherent, which has a current market value of $4.3 billion, rose more than 2% Monday morning to $31.92.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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