Coherent Corp is investing $650 million to double the manufacturing space and quadruple wafer capacity at its Sherman, Texas compound semiconductor facility. The site houses the world’s first high-volume 6-inch Indium Phosphide production platform, a critical material for high-speed optical components.
NVIDIA CEO Jensen Huang joined Coherent CEO Jim Anderson at the groundbreaking, signaling the deep strategic alignment between the two companies. The expansion is a direct downstream result of a multi-year strategic agreement and a $2 billion investment commitment from NVIDIA announced in March 2026.
The US Department of Commerce is supporting the project with a CHIPS Act letter of intent for up to $50 million in funding. The project is expected to generate approximately 1,000 new jobs, with over 550 specialized roles in advanced manufacturing and engineering.