[News] Coherent Opened up a New SiC Fab in Vietnam

On July 28, U.S.-based semiconductor materials and optoelectronic components giant Coherent officially inaugurated its new Vietnam facility located in the Nhon Trach 1 Industrial Park in Dong Nai Province. This high-tech manufacturing plant, built with a total investment of USD 127 million, will primarily produce silicon carbide (SiC) semiconductors, optical glass, and advanced optoelectronic components, widely used in applications like smartphones and electric vehicles.

Gan YC, head of Coherent’s Nhon Trach plant 1, stated that the new factory was designed with scalability, flexibility, and sustainability in mind to meet the demands of cutting-edge global technologies. He emphasized that the facility is not merely an expansion of production capacity but a critical part of Coherent’s regional center of excellence. It aims to integrate advanced technological capabilities, foster cross-functional collaboration, and support the company’s broader transformation strategy.

During the inauguration ceremony, Vietnamese Deputy Prime Minister Tran Luu Quang remarked that Vietnam is becoming a key strategic hub for global data center giants such as NVIDIA, Intel, and Meta. He noted that Coherent’s localized manufacturing will enable better integration into the industrial cluster, support data center market expansion, and solidify Vietnam’s role in the global semiconductor value chain.

As early as October 2023, Coherent had announced plans to invest in three high-tech projects across Nhon Trach Industrial Parks 1 and 2 in Dong Nai, including SiC semiconductor manufacturing, advanced optics, and the M-Cubed project. The initial investment totals nearly USD 1 billion, with an expected annual output value exceeding USD 1.2 billion. The Dong Nai provincial authorities issued the investment registration certificate in May 2024.

In Q2 of fiscal year 2025, Coherent’s revenue grew by 27%, with communications accounting for 57% and industrial markets 31%. Telecom revenue rose for the third consecutive quarter, up 21% year-on-year, driven primarily by data center interconnect (DCI) demand. Fueled by increasing demand for AI/ML transceivers, Coherent saw its order backlog grow for four consecutive quarters—a first in company history. To focus on high-growth sectors, the company has strategically exited non-core businesses and redirected resources to high-potential markets.

Regarding technology innovation, in 2025, the company launched 100G ZR, 400G ZR/ZR+, and 800G ZR coherent transceivers, as well as an optical circuit switch (OCS) platform, showcasing its strength in next-generation optical communication networks. Additionally, Coherent introduced the “ACE FL” thulium fiber laser series for medical applications and the “Python” industrial laser for OLED display manufacturing.

The company’s strategic realignment in the SiC business has also drawn attention. In October 2023, Coherent announced it would exit the SiC device and module business and entered into equity partnerships with DENSO and Mitsubishi Electric of Japan.

Under this agreement, both DENSO and Mitsubishi Electric each invested USD 500 million to acquire a 12.5% non-controlling stake in Coherent’s SiC business. The three companies also signed long-term supply agreements under which Coherent will provide 6-inch and 8-inch SiC substrates and epitaxial wafers to the two partners. This move aims to optimize the business focus on high-growth potential SiC substrates and epitaxy while strengthening Coherent’s market position through collaboration with industry leaders.

Prior to the Vietnam expansion, Coherent had already announced in March 2023 a $1 billion investment over the next decade to expand its global SiC substrate and epitaxial wafer production capacity. This includes the expansion of its Easton, Pennsylvania facility to boost SiC substrate and epi wafer output and the Järfälla, Sweden facility to strengthen production and market reach in Europe.

In addition, Coherent’s Fuzhou, China SiC slicing and polishing plant began operations in May 2023, with a designed annual capacity of 100,000 6-inch SiC wafers, expected to scale to 500,000 wafers per year by the end of 2025. The Fuzhou plant is also advancing R&D and production for 8-inch SiC wafers, which will significantly enhance Coherent’s global supply capabilities in the SiC market.

(Photo credit: Coherent)