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Coherent Secures $50 Million CHIPS Act Funding for Texas Expansion

A letter of intent signed with the Department of Commerce earmarks up to $50 million in CHIPS and Science Act funding for Coherent, fueling a major expansion of its Sherman, Texas, semiconductor facility to meet the surging demand for high-performance optical networking components required by modern artificial intelligence data centers.

Coherent Secures $50 Million CHIPS Act Funding for Texas Expansion

The investment aims to scale production of photonic devices built on Indium Phosphide, a specialized material essential for high-speed data transmission. By doubling the manufacturing footprint and quadrupling wafer production capacity at the Sherman site, Coherent intends to fortify the supply chain for next-generation AI infrastructure.

Beyond technical output, the project serves as a significant regional economic driver. Upon completion, the facility is slated to add more than 1,000 jobs to the local market, with over 550 of those positions dedicated to advanced manufacturing, engineering, and technical roles. This expansion marks a strategic push to keep domestic semiconductor production competitive against global demand cycles.

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