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Mitsubishi Expands Partnership with Coherent
Denso [6902.T] and Mitsubishi Electric [8058.T] are to jointly invest $1bn in US-headquartered Coherent’s [COHR] silicon carbide business. The firms will each put up $500m in exchange for a 12.5% stake, valuing the unit at some $4bn. It will operate as an independent subsidiary. Coherent will keep a 75% stake, but has the option of selling more within six months of the deal. Earlier this year, Mitsubishi signed another electric-vehicle (EV) supply deal with Coherent.
Vicissitudes of the Global EV Market
BMW [BMWG.DE] announced on Tuesday that group sales of its EVs rose 79.6% year-over-year in the third quarter (Q3). Mercedes-Benz Trucks, a unit of Daimler Truck [DTG.DE], has unveiled an electric long-haul truck, the eActros 600 — a challenger to Tesla’s [TSLA] Semi. Automakers are applying to the French government to secure EV subsidies, while Stockholm is planning to ban petrol and diesel cars as of 2025.
Vodaphone Expands Partnership with Arm
UK telecom Vodaphone [VOD.L] is to accelerate work with Arm [ARM] on Open Radio Access Network (Open RAN) chipsets, based on architecture from the semiconductor company. The platform will be powerful enough to support advanced 5G services. The chipsets and associated ecosystems will be designed to allow smaller companies to use them. Testing is set to go ahead before the end of the year.
How Much Further Will Meituan’s Share Price Fall?
The share price of Meituan [3690.HK], China’s biggest food delivery app, has lost nearly 40% in Hong Kong since its January peak; the Hang Seng Index lost approximately 7% over the same time period. According to Bloomberg, this makes Meituan one of the few big Chinese tech names to have shed the gains made after Covid restrictions were finally lifted last year. In August, the company warned of slower growth in the current quarter.
Samsung Shareholders Braced for the Worst
Samsung Electronics' [005930.KS] Q3 profit was expected to be down 80% year-over-year, victim of the current surfeit of chip supplies, ahead of its earnings on Wednesday. Analyst consensus from LSEG SmartEstimate suggests that operating profit fell to ₩2.1trn from ₩10.85trn last year. Its chip division, which has historically been a cash cow for the company, is expected to have lost up to ₩4trn.
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