Coherent Signs Preliminary Memorandum of Terms With The U.S. Department of Commerce to Expand the World’s First 150 mm Indium Phosphide Manufacturing Line
SHERMAN, Texas, Dec. 09, 2024 – Coherent Corp. (NYSE: COHR), a leader in optoelectronic devices and technology, recently announced the signing of a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce. This agreement, part of the CHIPS and Science Act, proposes an investment of up to $33 million aimed at the modernization and expansion of a state-of-the-art manufacturing cleanroom within Coherent’s existing facility in Sherman, Texas, which spans 700,000 square feet.
This project will facilitate the expansion of the world’s first 150 mm indium phosphide (InP) manufacturing line by introducing advanced wafer fabrication equipment to produce InP devices at scale.
Dr. Giovanni Barbarossa, Chief Strategy Officer and President of the Materials Segment at Coherent, expressed enthusiasm about the investment, stating, “This proposed investment allows Coherent to accelerate our industry leadership in InP technology and manufacturing. We are very excited to partner with the U.S. Department of Commerce, Senator John Cornyn, the state of Texas, and the Sherman Economic Development Corporation as we expand our efforts to deliver world-class optoelectronic products as part of the AI infrastructure build-out, as well as for advanced sensing applications.”
Senator John Cornyn highlighted the significance of this investment for national security and job creation, saying, “By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans. The chipmaking capabilities these resources will enable at Coherent in Sherman will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
The optoelectronic devices made from InP are utilized across various applications, including datacom and telecom transceivers that support AI infrastructure, advanced sensing in consumer electronics, and in medical and automotive sectors. The planned increase in production of Coherent’s InP devices, which are experiencing heightened demand, aims to improve supply chain resiliency and reinforce technological leadership, with the creation of approximately 70 direct jobs in the process.
The CHIPS for America initiative encompasses the CHIPS Program Office, which manages manufacturing incentives, and the CHIPS Research and Development Office, which oversees research and development programs. Both offices are located within the National Institute of Standards and Technology (NIST) at the Department of Commerce.
Coherent focuses on empowering market innovators with breakthrough technologies encompassing materials to systems. By delivering innovations that resonate across diversified applications in industrial, communications, electronics, and instrumentation markets, Coherent continually strives to elevate its position in the global market. The company maintains research and development, manufacturing, sales, service, and distribution facilities around the globe.
