(NIST) WASHINGTON, D.C. – The Department of Commerce’s CHIPS Program Office announced the signing of a letter of intent to provide up to $50 million in direct funding to Coherent Corp. (Coherent) under the CHIPS and Science Act.
Coherent is a global photonics leader, driving innovation and growth, with its technology used in data centers, communications, and industrial markets. The proposed funding will support the expansion of the company’s world-leading facility in Sherman, Texas, the first and largest high-volume 150mm (6-inch) Indium Phosphide (InP) semiconductor manufacturing facility.
InP-based photonic devices enable the high-speed optical interconnects that move data between processors, memory, and systems inside the world’s most advanced AI data centers. As AI workloads continue to scale, these technologies are becoming increasingly critical to overcoming data movement bottlenecks and enabling higher-performance, more energy-efficient computing architectures.
The expansion will add advanced wafer fabrication equipment and cleanroom capacity to increase production of InP-based photonic devices at scale. Additionally, it would create high-skilled manufacturing jobs in Sherman and bolster the domestic supply chain for critical photonics technologies.
“Indium phosphide photonics are essential for enabling high speed data transmission within AI systems, telecommunications, and advanced networks,” said Bill Frauenhofer, Executive Director for Semiconductor Investment and Innovation at the Department of Commerce. “The CHIPS incentives will expand production capability, strengthen the U.S. semiconductor supply chain, and accelerate the next generation of critical optical technologies.”
The Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer applauding manufacturing incentives announced by the Commerce Department and Coherent to support the expansion of Coherent’s indium phosphide manufacturing facility in Sherman, Texas.
The incentives will create more than 1,000 jobs and help expand production capacity for indium phosphide-based photonic devices, which are essential components in the high-speed optical interconnects that power artificial intelligence systems, advanced communications networks, and next-generation data centers.
“SIA applauds the Commerce Department and Coherent for advancing investments that strengthen America’s semiconductor supply chain and reinforce U.S. technology leadership. As AI adoption accelerates, demand for advanced optical technologies is growing rapidly. Expanding domestic production of indium phosphide devices will help bolster supply chain resilience, support innovation, and ensure the United States remains at the forefront of critical semiconductor technologies.”
As policymakers seek to strengthen America’s leadership in AI, it is essential to support the entire ecosystem of chip technologies that make AI systems possible.
Tagged with data centers, Power Brief, semiconductor, SIA