Coherent has plans to expand its 6-inch Indium Phosphide (InP) semiconductor manufacturing facility in Sherman, Texas. The expansion will support increased production of optical networking technologies used for AI infrastructure.

The company, which produces photonic devices, has received a letter of intent for up to $50 million in direct funding under the CHIPS and Science Act from the U.S. Department of Commerce. At project completion, the Sherman site is expected to create more than 1,000 jobs, including more than 550 direct advanced manufacturing, engineering, and technical roles.

The expansion will double manufacturing production space and quadruple wafer production capacity at the Sherman facility. The site is home to the world’s first and largest volume-production 6-inch InP manufacturing platform, which produces photonic devices used in optical networking components that support AI datacenters.

Coherent will add advanced wafer fabrication equipment and cleanroom capacity to increase production of InP-based photonic devices. These devices enable high-speed optical interconnects that move data between processors, memory, and systems inside AI datacenters.

The proposed CHIPS funding builds upon approximately $20 million in support previously provided through the Texas Semiconductor Innovation Fund and the Sherman Economic Development Corporation.

In a recent quote, Jim Anderson, CEO, Coherent, said, “AI is transforming our world and driving a new era of American manufacturing to build the infrastructure that will power the AI datacenters of the future. Semiconductor photonic devices are essential building blocks of AI infrastructure, enabling the high-speed connectivity required to move unprecedented amounts of data between processors, memory, and systems. This investment expands America’s capacity to manufacture critical AI-enabling technologies, creates high-value jobs, and reinforces U.S. leadership in advanced manufacturing, photonics, and innovation. We thank our partners at NVIDIA, Secretary Lutnick, Bill Frauenhofer and the CHIPS Program Office team, Governor Abbott, Adriana Cruz and the Texas Semiconductor Innovation Fund, and Kent Sharp and the Sherman Economic Development Corporation for their continued support as we invest in expanded capacity and future growth.”

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