A $14 million grant from the Texas Semiconductor Innovation Fund (TSIF) has been awarded to Coherent Corp. to expand production of Indium Phosphide (InP) wafers in Sherman, Texas. The project will involve more than $154 million in capital investment and is expected to accelerate the establishment of what is described as the world’s first 6-inch InP wafer fabrication plant.
Governor Greg Abbott commented on the announcement, stating, “Texas is the new frontier for technological innovation. This $154 million investment by Coherent to establish the world’s first 6-inch InP wafer fabrication plant in Sherman is testament to Texas’ leadership in semiconductor manufacturing and the technologies of tomorrow. With our skilled and growing workforce and the best business climate in the nation, Texas is where the future is building.”
The new facility will consolidate Coherent’s North American semiconductor operations and increase capacity for InP wafer production. Indium Phosphide technology supports next-generation photonics, high-speed data communications, artificial intelligence interconnects, advanced sensing applications, as well as emerging 6G wireless and satellite communication networks.
Beck Mason, Executive Vice President of Semiconductor Devices at Coherent Corp., said, “Coherent Corp. is honored to receive this grant from the Texas Semiconductor Innovation Fund and appreciates the support of Governor Abbott, the Texas Economic Development & Tourism Office, and the Texas Semiconductor Innovation Consortium Executive Committee. This grant accelerates the establishment of the world’s first 6-inch Indium Phosphide wafer factory in Texas — a major milestone as we scale operations, grow our Texas workforce, and strengthen the U.S. supply chain for photonics technologies powering data centers, AI, telecommunications, and other advanced connectivity applications. Coherent is proud to invest in Texas and to advance the state’s leadership in semiconductor manufacturing.”
State Representative Shelley Luther also noted local benefits: “This positions Sherman as a hub for advanced photonics and AI technologies,” she said. “With Texas leading the nation in semiconductor innovation, we’re building a brighter future for our families, local workforce, and the global supply chain right here at home.”
The TSIF was established following Governor Abbott’s signing of the Texas CHIPS Act into law in 2023. The fund aims to support research, design, and manufacturing within Texas’ semiconductor industry through grants that encourage company expansion within state borders while supporting higher education institutions’ expertise.
The Office of Texas Governor Greg Abbott has played a significant role in job growth across Texas according to its official website, which also highlights economic initiatives focused on employment opportunities statewide since Abbott took office after his election in 2014 [source]. Under his administration based primarily out of Austin [source], priorities have included economic development alongside protection of individual liberties and educational enhancement [source].
More information about Coherent can be found online.
