Governor Greg Abbott has announced that Coherent Corp. will receive a $14,076,031 grant from the Texas Semiconductor Innovation Fund (TSIF) to support the expansion of Indium Phosphide (InP) wafer production in Sherman. The investment by Coherent is expected to exceed $154 million and will result in the creation of the world’s first 6-inch InP wafer fabrication plant.
“Texas is the new frontier for technological innovation,” said Governor Abbott. “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 technology developed at this facility will be important for advancing photonics and high-speed connectivity solutions used in data communications, telecommunications, artificial intelligence interconnects, advanced sensing, as well as 6G wireless and satellite communications networks. The Sherman site will consolidate Coherent’s North American semiconductor operations, which are currently distributed across various locations in the United States.
“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,” said Beck Mason, Executive Vice President of Coherent Corp.’s Semiconductor Devices division. “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.”
Representative Shelley Luther added: “This positions Sherman as a hub for advanced photonics and AI technologies. 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 created following Governor Abbott’s signing of the Texas CHIPS Act into law in 2023. This program aims to sustain Texas’ role as a leader in semiconductor research, design, and manufacturing by providing grants that encourage companies like Coherent to expand within Texas. The initiative also supports higher education institutions developing expertise relevant to this sector.
According to information from the official website, under Governor Abbott’s leadership since his election in 2014,the Office of Texas Governor Greg Abbott has contributed significantly to job growth across Texas while maintaining its primary offices at Austin’s State Insurance Building.The office has been recognized for its focus on economic opportunities—including job creation—and received national attention when Greg Abbott was named among TIME’s 100 Most Influential People in 2024.The governor’s office continues delivering services statewide with an emphasis on education enhancement and protection of individual liberties.
More information about Coherent can be found online.
