Governor Greg Abbott has announced a Texas Semiconductor Innovation Fund (TSIF) grant of $14,076,031 to Coherent Corp. The grant will support the expansion of Indium Phosphide (InP) wafer production at the company’s facility in Sherman. The project is expected to result in over $154 million in capital investment.
“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.”
Coherent’s Sherman facility will become a central location for its North American semiconductor operations, bringing together activities previously spread across the United States and increasing InP wafer production capacity. Indium Phosphide technology plays a key role in supporting advanced photonics and high-speed connectivity for applications such as data communications, telecommunications, artificial intelligence interconnects, advanced sensing, and next-generation wireless networks.
“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 Coherent Corp. Semiconductor Devices Executive Vice President Beck Mason. “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 commented on what this means for local development: “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 established following Governor Abbott’s signing of the Texas CHIPS Act into law in 2023. The fund aims to reinforce Texas’ status as a leader in semiconductor research and manufacturing by providing grants that encourage industry growth within the state.
The Office of Texas Governor Greg Abbott has played an active role in advancing economic opportunities such as job creation—an area where Texas leads nationally—and focuses on supporting industries that boost employment levels statewide.
Governor Abbott has led his office since being elected in 2014 and operates from Austin. His administration continues efforts toward enhancing education opportunities and expanding economic prospects throughout Texas.
More information about Coherent can be found online.
