Coherent Corp. announced that it has finished expanding its silicon‑carbide (SiC) platform to 300‑mm wafers, a milestone that will increase device density and lower thermal resistance for its power‑electronics and photonics products.
The move to 300‑mm wafers allows Coherent to place more devices on each substrate, improving yield and reducing the cost per chip. Lower thermal resistance translates into higher power‑efficiency and enables higher switching speeds, which are critical for the next generation of AI accelerators and data‑center interconnects.
By scaling its SiC production, Coherent strengthens its position in the high‑growth AI data‑center market and supports its strategy of vertical integration and margin expansion. The larger wafers also give the company a competitive edge over rivals such as Wolfspeed, ON Semiconductor, and Infineon, who are still limited to 200‑mm or 300‑mm silicon carbide substrates.
Coherent’s Q1 fiscal 2026 results, released on November 5, 2025, showed revenue of $1.58 billion, up 17 % YoY, and a non‑GAAP EPS of $1.16, beating analyst expectations by $0.12. The company’s non‑GAAP gross margin rose to 38.7 %, a 200‑basis‑point increase driven by higher mix of high‑margin AI‑centric products and disciplined cost control amid rising raw‑material costs.
Revenue growth was led by the AI data‑center segment, which grew 24 % YoY to $1.50 billion in Q3 FY25 and 17 % in Q1 FY26, reflecting strong demand from hyperscalers. The AR/VR and power‑electronics segments also contributed to top‑line growth, although they remain smaller in scale compared to the AI segment.
CEO Jim Anderson said the 300‑mm expansion “positions Coherent to capture a larger share of the AI data‑center market as hyperscalers demand more efficient, high‑density solutions.” CFO Sherri Luther highlighted that the investment in larger wafers is part of the company’s broader portfolio optimization, which also included the sale of its Aerospace and Defense business for $400 million.
Investors welcomed the announcement, citing the company’s strong earnings performance, robust AI demand, and the strategic importance of the SiC platform expansion. The move is expected to reinforce Coherent’s competitive moat and support continued margin expansion in the coming quarters.
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