Coherent breaks ground on expanded Texas facility to scale AI's optical backbone; NVIDIA invests $2 billion for R&D and manufacturing.
AndersonCoherentNVIDIA

Coherent breaks ground on expanded Texas facility to scale AI's optical backbone; NVIDIA invests $2 billion for R&D and manufacturing.

Coherent has begun construction on an expanded facility in Sherman, Texas, to enhance production of InP wafers, crucial for AI infrastructure. NVIDIA is investing $2 billion to support R&D and manufacturing, aiming to create over 550 jobs and bolster U.S. chip production.

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Coherent has officially broken ground on an expanded manufacturing facility in Sherman, Texas, aimed at scaling production of InP wafers, which are essential for the optical backbone of AI infrastructure.125

The new facility is part of a broader initiative to enhance U.S. chip manufacturing, supported by public programs like the CHIPS Act, which has allocated roughly $50 billion to revitalize domestic production.

NVIDIA's investment of $2 billion will not only fund research and development but also ensure future capacity and U.S.-based manufacturing, alongside a multibillion-dollar commitment for advanced laser and optical networking products.3

“Today marks an important milestone — not just for Coherent, but for American manufacturing and for the future of AI infrastructure,” said Anderson, highlighting the significance of this development.

The expansion is expected to create over 550 direct jobs and thousands of indirect jobs, reinforcing the local economy.4

The move to 6-inch wafers, which quadruples the usable area compared to 3-inch wafers, is anticipated to drive down costs and meet the increasing demands of AI buildout.

“We were founded as a manufacturing company in 1971. We’ve always been a U.S. manufacturing company — and after 50 years, the most advanced 6-inch indium phosphide line in the world is right here in Sherman,” Anderson added, emphasizing the company's commitment to domestic production.

Key Insight
“Coherent has begun construction on an expanded manufacturing facility in Texas, aimed at enhancing AI infrastructure. NVIDIA is investing $2 billion to support this initiative, which is expected to create over 550 direct jobs.”
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“Coherent broke ground today on an expanded manufacturing building in Sherman, Texas.”
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