Coherent receives $50 million CHIPS funding to expand InP fab in Texas
Coherent has signed a letter of intent to receive up to USD 50 million under the US CHIPS and Science Act to expand its indium phosphide semiconductor manufacturing facility in Sherman, Texas. The expansion will double manufacturing space and quadruple wafer production capacity, and is expected to create more than 1,000 jobs.
The Sherman facility is home to what Coherent describes as the world's first and largest volume-production 6-inch InP manufacturing platform. InP-based photonic devices enable the high-speed optical interconnects that move data between processors, memory and systems in AI infrastructure – a role that becomes more critical as AI workloads continue to scale, according to a press release from the company.
"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," said Jim Anderson, CEO of Coherent.
The CHIPS award builds on approximately USD 20 million in support previously provided through the Texas Semiconductor Innovation Fund and the Sherman Economic Development Corporation. A groundbreaking ceremony was held at the Sherman facility on June 16, attended by NVIDIA, federal and state officials and local community leaders.
The expansion is directly tied to Coherent's partnership with NVIDIA, which spans more than two decades.
"AI factories are the infrastructure of the new industrial revolution. Connecting millions of GPUs into one thinking machine requires optical technology built for scale, speed, and energy efficiency," said Jensen Huang, founder and CEO of NVIDIA.
