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Coherent to receive $50m US CHIPS Act funding to expand Sherman 6-inch InP fab

34 d ago

Coherent Corp of Saxonburg, PA, USA has signed a letter of intent to receive up to $50m in direct funding under the US CHIPS and Science Act from the Department of Commerce. The funding will expand its 6-inch indium phosphide (InP) photonic device manufacturing facility in Sherman, Texas. The investment aims to meet growing demand for optical networking technologies powering AI data centers and to strengthen Coherent’s partnership with NVIDIA. At completion, the expansion is expected to create over 1,000 jobs, including more than 550 direct advanced manufacturing, engineering, and technical roles. It will double manufacturing production space and quadruple wafer production capacity, significantly boosting US-based production of AI-enabling technologies. The CHIPS award builds on about $20m in prior support from the Texas Semiconductor Innovation Fund and the Sherman Economic Development Corporation. The announcement coincided with a groundbreaking ceremony at the Sherman facility attended by NVIDIA, federal, state, and local officials. CEO Jim Anderson stated that semiconductor photonic devices are essential for AI infrastructure, enabling high-speed connectivity for data movement. He thanked partners including NVIDIA, the CHIPS Program Office, Governor Abbott, and the Sherman Economic Development Corporation. Coherent’s Sherman site is the world’s first and largest volume-production 6-inch InP manufacturing platform, critical for AI-driven optical interconnects. The expansion will add advanced wafer fabrication equipment and cleanroom capacity. Bill Frauenhofer of the Department of Commerce noted that InP photonics are essential for high-speed data transmission, and the incentives will expand production and strengthen the supply chain. Coherent and NVIDIA have collaborated for over two decades. Jensen Huang, NVIDIA’s CEO, said AI factories require optical technology built for scale, speed, and energy efficiency, and Coherent’s expanded InP manufacturing in Texas will strengthen the US supply chain for AI infrastructure. The proposed CHIPS award, NVIDIA partnership, and Sherman expansion position Coherent to meet accelerating AI infrastructure demand while reinforcing US leadership in advanced photonics and optical networking.