Silicon carbide substrates
Demand was weak in fiscal 2025; the silicon carbide business held $604 million of restricted cash at June 30, 2026.
The numbers
What it is
Semi-insulating silicon carbide substrates in 100 mm, 150 mm and 200 mm sizes, used for GaN-on-SiC RF amplifiers in wireless base stations. The business is housed in Silicon Carbide LLC, which received $1.0 billion for a 25% equity stake in December 2023.
Why it matters to the stock. This is the largest drag in the Industrial segment when demand is weak. Its outside-funded structure limits how much its losses or capital spending reach the parent's cash flow, which is why traders track the restricted cash balance.
News
Coherent launches thick silicon carbide epitaxy for power devices up to 10 kV
Coherent said its 150 mm and 200 mm thick silicon carbide epitaxy platforms already support device architectures up to 10 kV in production, with demonstrated capability beyond that level.